Chamath Palihapitiya Says Companies Are Overspending On AI As Cheaper Models Rapidly Close The Gap: 'Burn

Chamath Palihapitiya Says Companies Are Overspending On AI As Cheaper Models Rapidly Close The Gap: 'Burn

Open-weight models match proprietary performance at 95% lower cost—DeepSeek R1 $2,740 vs GPT-5.5 Pro $105,000—exposing massive AI overspending without governance. Tech leaders must adopt mixed-model governance: deploy cheap systems for commodity workloads, reserve premium only where ROI justifies cost.