Glowing compact node network representing small language model efficiency against deep blue background

Small Language Models Are Eating the World

Small language models like Phi-3, Gemma, and Llama 3.1 8B are matching frontier model performance on 70–80% of enterprise AI tasks, at a fraction of the cost. This analysis delivers benchmark data, a total cost of ownership model, and a decision framework for knowing exactly when to deploy an SLM versus a frontier LLM..
A cracked silver padlock with glowing blue fracture lines against a dark navy background, symbolizing RSA encryption being broken by quantum computing

DeepSeek R1 and the Cost Revolution | How Chinese Frontier Labs Are Disrupting AI Economics

DeepSeek R1 achieves 90.8% on MMLU — rivaling OpenAI's o1 — at roughly one-fourteenth the cost of Claude Opus. The pricing gap is structural, not temporary, and the enterprise ROI case is now impossible to ignore. This analysis breaks down the architecture, benchmarks, and 90-day action plan for CTOs and CFOs evaluating the switch.