Ban only meant to create perceived value and hype for these models.
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Anthropic bent the knee, didn't it?
There is also a commercial aspect...
Bigger models are more expensive to train and serve..
Inference is currently insanely profitable if you have the hardware and the automation in place to support and serve it. At that point, it's a money printing machine, and you want to squeeze as much out of it as you can.
While training new models is extremely expensive, and serving them probably makes less profit (at least initially).
Having an external brake applied to the frontier labs is likely good for their bottom line, while increasing hype and directing customers' annoyance away from them.
It's likely only a temporary benefit, though. The dragon will catch up and apply more pressure, both on inference price and capabilities.
Yeah if Europe stops buying it, you gotta sell it elsewhere I guess?
Until the next deranged post, when it's another model that is banned.