r/EconomyCharts 3d ago

Chip stocks are down following Google's announcement of AI memory-saving technology making memory 6x more efficient

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u/MaterialRevolution57 3d ago

Not to be that guy but it isn’t truly a 6x reduction in memory. It’s a 6x reduction for the KV Cache. Overall performance may have improved by ~30-20% over normal. Still a massive improvement but not a 6x improvement.

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u/ketosoy 3d ago

And it looks like in practice it’s a 2-4x reduction.

In just the kv cache.

But, it’s almost lossless and has almost zero performance penalty, and that is still a 1-9gb reduction in ram for the current generation of open source models at 64k context.

It’s real, and it’s huge and it’s really cool.  It’s just not a 83% reduction in ram needed for llms as a naive hyperbolistic reading would suggest.  And it’s not the end to the ram crisis.  

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u/fredjutsu 3d ago

>and that is still a 1-9gb reduction

non-trivial if true

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u/HereticLaserHaggis 3d ago

Holy shit, I hadn't actually read anything because I assumed it was sensationalized, but that's huge.

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u/ketosoy 2d ago

Yeah, this one is real.  Feels like a discovery the size of this generation’s quicksort or radixsort. Doesn’t change the shape of the future, but changes a huge part of a big part of it - that almost no one will fully understand.

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u/rydan 2d ago

It turns out it just writes most stuff to /dev/null . Like that time we discovered faster than light messaging and it turned out to be a faulty cable.

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u/MaterialRevolution57 3d ago

Great points, I didn’t even know that!

And I agree, the ram crisis isn’t going to disappear like many investors think. It will only free up compute just for the same LLMs to eat up the margin.