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Some 2024 LLM takeaways: multimodal vision became common, LLM prices crashed, overall environmental impact worsened despite efficiency gains, and slop arrived

A lot has happened in the world of Large Language Models over the course of 2024.  Here's a review of things we figured …

Simon Willison's Weblog Simon Willison

Context & Ripple Effects

This review marks a transition from LLM capability novelty to deployment economics: vision became routine while model pricing fell sharply, even as aggregate environmental impact moved in the opposite direction. Later coverage shifts attention to reasoning features, coding agents, and higher-priced subscriptions, suggesting that cheaper base-model access did not end demand for differentiated capabilities.

The trade-off also frames subsequent scrutiny of product design: large-context limitations around latency, cost, and usability show why lower headline model prices do not automatically translate into cheaper or better enterprise workflows.

First-order effects

  • Model providers face lower pricing power for broadly available LLM access, while buyers can more readily treat multimodal vision as a standard capability rather than a premium differentiator.
  • Efficiency improvements have not reduced the sector's overall environmental burden; the growth in LLM development and use outweighs those gains in this account.

Second-order effects

  • Falling model prices raise pressure on providers to differentiate through task performance, tooling, and product packaging rather than raw access to multimodal models.
  • As lower-cost models enable more output, including “slop,” buyers must place more value on evaluation and workflow controls instead of assuming higher volume creates higher-quality results.

Third-order effects

  • If capability commoditization and usage growth continue together, LLM competition will increasingly hinge on the economics of serving useful tasks—not simply the cost of a model call.
  • The mismatch between per-model efficiency and rising aggregate impact points to environmental performance becoming a system-level constraint as adoption expands, though this review alone does not establish how providers or policymakers will respond.

The trend: LLMs are moving toward commoditized baseline capabilities and lower unit prices, while value, operational control, and environmental costs shift to the scale of deployment.

Discussion

  • @randomwalker Arvind Narayanan on bluesky
    Really enjoyed “Things we learned about LLMs in 2024” by  —  @simonwillison.net, especially this analogy between today's datacenter buildout and the 19th century railway boom.  The parallels are striking. simonwillison.net/2024/Dec/31/ ...  [image]
  • @philipmai.com Philip Mai on bluesky
    The good, the bad and the ugly: “Things we learned about LLMs in 2024” A nice round-up of development in the field and lots of food for thought about the future. simonwillison.net/2024/Dec/31/ ...
  • @jweiss.io Johannes Weiss on bluesky
    Kudos @simonwillison.net, this is such a good article: simonwillison.net/2024/Dec/31/ ... .  Best points to me:  — DeepSeek v3 $6m training suggests HUGE infra spends maybe unnecessary but tech execs prolly continue to invest  — Synthetic training data works  — LLMs look easy to …
  • @anildash.com Anil Dash on bluesky
    I think everyone who has an opnion, good or bad, about LLMs, should read how @simonwillison.net has summer up what's happened in the space this year.  He's the most credible, most independent, most honest, and most technically fluent person watching the space. simonwillison.net/2…
  • @aleximas Alex Imas on bluesky
    Great summary right here on the state of AI in 2024.  I particularly like the part on “LLMs need better criticism”.  As Simon says, arguing there are no good use cases and that it's all unreliable “plagiarism” slop is a pretty good tell on how well you understand the tech.  [embe…
  • @randfish Rand Fishkin on bluesky
    simonwillison.net/2024/Dec/31/ ... is a great roundup of what's happened in the world of LLMs this year.  —  I say this as someone who's barely knowledgeable enough about this stuff to grasp the intricacies, making the accessibility of the post all the more impressive! [image]
  • @simon.fedi.simonwillison … Simon Willison on bluesky
    Here's my end-of-year review of things we learned out about LLMs in 2024 - we learned a LOT of things https://simonwillison.net/2024/Dec/31/ llms-in-2024/  —  Table of contents: [image]
  • @simonw Simon Willison on x
    I still can't quite believe that I can run a GPT-4 class open weights on my laptop now https://simonwillison.net/... [image]
  • @simonw Simon Willison on x
    I had fun with this comparison of today's datacenter arms race to the 1800s rollout of the railways, with its sequence of bubbles and resulting financial crashes https://simonwillison.net/... [image]
  • @simonw Simon Willison on x
    One of the most notable trends from 2024 was the total collapse in terms of LLM pricing - the API models are absurdly inexpensive now Generating captions for 68,000 photos using Gemini 1.5 Flash 8B costs $1.68! https://simonwillison.net/... [image]
  • @id_aa_carmack John Carmack on x
    LLM assistants are going to be a good forcing function to make sure all app features are accessible from a textual interface as well as a gui.  Yes, a strong enough AI can drive a gui, but it makes so much more sense to just make the gui a wrapper around a command line interface …
  • r/programming r on reddit
    Things we learned out about LLMs in 2024