“AI will be most powerful when it disappears into the background, quietly making everything work better.” – Sundar Pichai, CEO, Google
The rise and plateau of large models
Once hailed as the iPhone moment for artificial intelligence, OpenAI’s ChatGPT and its successors ignited massive enthusiasm for large language models (LLMs). But as with smartphones, progress now feels incremental. GPT-5’s release, while advanced, has not generated the seismic excitement once associated with its predecessors.
From breakthroughs to better fits
The slowdown is giving rise to smaller, specialized alternatives—small language models (SLMs). These models, unlike their giant cousins, are cheaper, faster, and tailored for specific tasks. They appeal to companies seeking efficiency over grandeur, much like compact yet capable smartphones reshaped tech markets.
Smarter and more practical intelligence
As IBM’s David Cox explains, not every chatbot needs to master “advanced physics.” Businesses increasingly prefer SLMs that handle focused, repetitive tasks efficiently, offering a better return on investment. They also integrate smoothly into company systems and devices, enabling more localized, energy-efficient AI applications.
The new era of “Lego-like” AI
Firms are now building modular AI systems—assembling smaller models like Lego blocks rather than relying on a single monolithic brain. Nvidia’s research even suggests this modular approach could define the future of agentic AI, where numerous smaller agents collaborate dynamically.
Rethinking the AI hierarchy
Even OpenAI is adapting, using a mix of model sizes for different complexities. As SLMs grow capable, they may restore balance between cloud-based giants and on-device intelligence, offering a smarter, more sustainable path forward for the AI ecosystem.

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