Demystifying the Benefits of Compact Language Models for Specific Business Needs

October 30, 2023

Large language models (LLMs) are a type of artificial intelligence (AI) which are trained on massive datasets of text and code. This allows them to learn the statistical relationships between words and phrases, and to generate human-quality text. LLMs are being used for a wide variety of tasks, such as machine translation, text summarization, question answering, and creative writing. Some of the most well-known LLMs include GPT-3, LaMDA, and Bard. These models are capable of generating realistic and engaging text, and they have the potential to revolutionize the way we interact with computers.

However, LLMs also have some drawbacks. One of the biggest challenges is that they can be very expensive to train and run. This is because they require large amounts of computing power. Additionally, LLMs can sometimes generate text that is biased or offensive. As a result, there is a growing interest in smaller language models. Smaller models are not as powerful as LLMs, but they are much cheaper to train and run. Additionally, they are less likely to generate biased or offensive text.

In this blog we will discuss the emergence of new smaller LLMs.

The Dawn of Compact Language Models: A New Era of Accessibility and Affordability

Smaller LLMs like Mistral-7B, Llama2-13B, and Falcon-13B offer several advantages over their larger counterparts, such as Falcon 40B, Llama 70B, or Falcon 180B. While larger LLMs may excel in certain aspects, smaller LLMs provide a balance between performance and practicality.

Cost-Effectiveness and Efficiency

  • Smaller LLMs are less expensive to train and run, making them more accessible for individuals, startups, and small businesses.
  • They require less computing power, making them more energy-efficient and environmentally friendly.
  • They can be deployed on smaller hardware setups, reducing infrastructure costs.

Transparency and Customization

  • Smaller LLMs are often open-source, allowing for code inspection and modifications to suit specific needs.
  • They offer greater control over the training process, enabling customization for specific tasks or domains.
  • Their smaller size makes them easier to understand and debug, facilitating research and development.

Reduced Risk of Bias and Improved Generalization

  • Smaller LLMs are less likely to generate biased or offensive text due to training on smaller, curated datasets.
  • They may generalize better to new tasks and domains, as they are less prone to overfitting on large datasets.
  • Their reduced complexity can make them more interpretable, allowing for better understanding of their decision-making processes.

Applications and Versatility

  • Smaller LLMs are well-suited for research, enabling exploration of new training methods and evaluation techniques.
  • They are ideal for development, allowing rapid prototyping and experimentation with new AI applications.
  • They can be seamlessly integrated into production environments, enhancing the performance of existing AI applications.

In summary, smaller LLMs like Mistral-7B, Llama2-13B, and Falcon-13B strike a balance between performance and practicality. Their cost-effectiveness, efficiency, transparency, customization, and reduced risk of bias make them attractive alternatives to larger LLMs for a wide range of applications.

Output Quality of Smaller LLMs

Smaller LLMs can generate high-quality output, especially in specific domains where they have been fine-tuned. For example, a smaller LLM that has been fine-tuned on a dataset of medical text may be able to generate more accurate and informative medical summaries than a larger LLM that has not been fine-tuned on medical data.

In general, however, larger LLMs tend to generate higher quality output than smaller LLMs. This is because larger LLMs have been trained on more data and have more parameters, which allows them to learn more complex relationships between words and generate more nuanced and informative text. Smaller LLMs can still generate high-quality output for many tasks, especially if they are fine-tuned on the specific task that you are interested in. Additionally, smaller LLMs are more cost-effective, efficient, and easier to deploy than larger LLMs.

Overall, smaller LLMs offer a good balance between output quality, cost, efficiency, and deployability. If you are looking for a more cost-effective, efficient, and easier to deploy solution, then a smaller LLM may be a better choice.

Examples of Proprietary LLMs

  • GPT-3
  • LaMDA
  • Megatron-Turing NLG
  • Bloom 176B

Examples of Open Source LLMs

  • Bard
  • Flamingo
  • Jurassic-1 Jumbo
  • GPT-NeoX

Open source LLMs are more cost-effective than proprietary LLMs.

Open source LLMs are typically free to use, while proprietary LLMs can be expensive. For example, OpenAI's GPT-3 API can cost up to $0.60 per 1,000 words generated. In contrast, open source LLMs like Bard and GPT-NeoX are free to use. Even if you need to pay for cloud computing resources to train and run open source LLMs, the costs are typically much lower than the costs of using proprietary LLMs. Additionally, open source LLMs are more flexible and customizable, which can save you money in the long run.

Overall, open source LLMs are a more cost-effective solution for many businesses and organizations than proprietary LLMs.

Demystifying the Cost-Effectiveness of Open-Source Smaller Language Models

There are a number of reasons why smaller LLMs that are open source and hosted are more cost-effective than larger proprietary LLMs:

  • Lower training costs: Smaller LLMs require less data and computing power to train than larger LLMs. This can lead to significant savings in training costs.
  • Lower inference costs: Smaller LLMs are typically more efficient to run than larger LLMs. This means that they can be used to generate more text for the same amount of money.
  • No licensing fees: Open source LLMs are free to use. This means that you do not have to pay any licensing fees to use them.
  • Ability to customize: Open source LLMs can be customized to meet your specific needs. This can help you to get the most out of your LLM.
  • Access to the latest research: Open source LLMs are often developed by researchers who are actively working on improving LLMs. This means that you have access to the latest advances in LLM technology.

In addition to these cost benefits, open source LLMs also offer a number of other advantages, such as:

  • Transparency: The code for open source LLMs is available for anyone to inspect. This means that you can be sure that the LLM is not doing anything malicious.
  • Security: Open source LLMs are typically more secure than proprietary LLMs. This is because the code is open to scrutiny by the security community.
  • Community support: Open source LLMs are often supported by a large community of users and developers. This means that you can get help if you have any problems with the LLM.

As a result, smaller LLMs are becoming increasingly popular. They are being used by a wide range of organizations, including startups, research institutions, and large enterprises.


In recent years, there has been a growing interest in smaller language models (LLMs). This is due in part to the high cost of training and running large LLMs. Smaller LLMs are not as powerful as larger LLMs, but they are much cheaper to train and run. Additionally, they are less likely to generate biased or offensive text. The emergence of smaller LLMs is a significant development in the field of natural language processing. Now it is possible to develop powerful LLMs that are also cost-effective and responsible. This is likely to lead to a wider adoption of LLMs in a variety of applications.

In this article, we have discussed the benefits of building on smaller AI models. Smaller LLMs have the potential to revolutionize the way we interact with computers. They are more affordable, more efficient, and more responsible than larger LLMs. As a result, they are likely to be used in a wide range of applications, from chatbots to virtual assistants to educational tools.

We encourage you to explore the potential of smaller LLMs. They are a powerful tool that can be used to create a more humane and equitable future.

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