Startups

5 steps to ensure startups successfully deploy LLMs

Comment

Computer Processor Processing Artificial Intelligence Data. Glowing Chip. Computer And Technology Related 3D Illustration Render.
Image Credits: yucelyilmaz / Getty Images

Lu Zhang

Contributor

Lu Zhang, the founder and managing partner of Fusion Fund, is a renowned Silicon Valley–based investor and a serial entrepreneur in healthcare.

ChatGPT’s launch ushered in the age of large language models. In addition to OpenAI’s offerings, other LLMs include Google’s LaMDA family of LLMs (including Bard), the BLOOM project (a collaboration between groups at Microsoft, Nvidia, and other organizations), Meta’s LLaMA, and Anthropic’s Claude.

More will no doubt be created. In fact, an April 2023 Arize survey found that 53% of respondents planned to deploy LLMs within the next year or sooner. One approach to doing this is to create a “vertical” LLM that starts with an existing LLM and carefully retrains it on knowledge specific to a particular domain. This tactic can work for life sciences, pharmaceuticals, insurance, finance, and other business sectors.

Deploying an LLM can provide a powerful competitive advantage — but only if it’s done well.

LLMs have already led to newsworthy issues, such as their tendency to “hallucinate” incorrect information. That’s a severe problem, and it can distract leadership from essential concerns with the processes that generate those outputs, which can be similarly problematic.

The challenges of training and deploying an LLM

One issue with using LLMs is their tremendous operating expense because the computational demand to train and run them is so intense (they’re not called large language models for nothing).

First, the hardware to run the models on is costly. The H100 GPU from Nvidia, a popular choice for LLMs, has been selling on the secondary market for about $40,000 per chip. One source estimated it would take roughly 6,000 chips to train an LLM comparable to ChatGPT-3.5. That’s roughly $240 million on GPUs alone.

Another significant expense is powering those chips. Merely training a model is estimated to require about 10 gigawatt-hours (GWh) of power, equivalent to 1,000 U.S. homes’ yearly electrical use. Once the model is trained, its electricity cost will vary but can get exorbitant. That source estimated that the power consumption to run ChatGPT-3.5 is about 1 GWh a day, or the combined daily energy usage of 33,000 households.

Power consumption can also be a potential pitfall for user experience when running LLMs on portable devices. That’s because heavy use on a device could drain its battery very quickly, which would be a significant barrier to consumer adoption.

Integrating LLMs into devices presents another critical challenge to the user experience: effective communication between the LLM and the device. If the channel has a high latency, users will be frustrated by long lags between queries and responses.

Finally, privacy is a crucial component of offering an LLM-based service that conforms to privacy regulations that customers want to use. Given that LLMs tend to memorize their training data, there is a risk of exposing sensitive data when users query the model. User interactions are also logged, which means that users’ questions — sometimes containing private information — may be vulnerable to acquisition by hackers.

The threat of data theft is not merely theoretical; several feasible backdoor attacks on LLMs are already under scrutiny. So, it’s unsurprising that over 75% of enterprises are holding off on adopting LLMs out of privacy concerns.

For all the above reasons, including bankrupting their companies or creating catastrophic reputational damage, business leaders are concerned about taking advantage of the early days of LLMs. To succeed, they must approach things holistically because the challenges need to be simultaneously conquered before launching a viable LLM-based offering.

It’s often difficult to know where to start. Here are five crucial points tech leaders and startup founders should consider when planning a transition to LLMs:

1. Keep an eye out for new hardware optimizations

Although training and running an LLM is expensive now, market competition is already driving innovations that reduce power consumption and boost efficiency, which should reduce costs. One of these solutions is Qualcomm’s Cloud AI 100. The organization claims it’s designed for “deep learning with low power consumption.”

Leaders need to empower management to stay abreast of developments in hardware to reduce power consumption and, therefore, costs. What may not be within reach currently may soon become feasible with the next wave of efficiency breakthroughs.

2. Explore a distributed data analysis approach

Sometimes the infrastructure supporting an LLM could combine edge and cloud computing for distributed data analysis. This would be appropriate for several use cases, such as when one has critical and highly time-sensitive data on an edge device while leaving less time-sensitive data to be processed in the cloud. This approach enables much lower latency for users interacting with the LLM than if all computations were done in the cloud.

On the other hand, offloading computations to the cloud will help preserve a device’s battery power, so there are critical trade-offs to consider with a distributed data analysis approach. Decision-makers must determine the optimized proportion of computations done by each processor given the needs at that moment.

3. Stay flexible regarding which model to use

It’s essential to be flexible on which underlying model to use in building a vertical LLM because each has its pros and cons for any particular use case. That flexibility should not only be at the outset when selecting a model but should also remain a critical factor throughout the use of the model, as needs could change. In particular, open source options are worth considering because these models can be smaller and less expensive.

Building an infrastructure that can accommodate switching to a new model without operational disruption is essential. Some companies now offer “multi-LLM” solutions, such as Merlin, whose DiscoveryPartner generative AI platform uses LLMs from OpenAI, Microsoft, and Anthropic for document analysis.

4. Make data privacy a priority

In an era of increasing regulation for data and data breaches, data privacy must be a priority. One approach is to use sandboxing, in which a controlled computational environment confines data to a restricted system.

Another is data obfuscation (such as with data masking, tokenization, or encryption), which allows the LLM to understand the data while making it unintelligible to anyone who might tap into it. These and other techniques can assure users that privacy is baked into your LLMs.

5. Looking ahead, consider analog computing

An even more radical approach to deploying hardware for LLMs is to move away from digital computing. Once considered more of a curiosity in the IT world, analog computing could ultimately prove to be a boon to LLM adoption because it could reduce the energy consumption required to train and run LLMs.

This is more than just theoretical. For example, IBM has been developing an “analog AI” chip that could be 40 to 140 times more energy efficient than GPUs for training LLMs. As similar chips enter the market from competing vendors, we will see market forces bring down their prices.

The LLM future is here — are you ready?

LLMs are exciting, but developing and adopting them requires overcoming several feasibility hurdles. Fortunately, an increasing number of tools and approaches are bringing down costs, making systems more challenging to hack and ensuring a positive user experience.

So, don’t hesitate to explore how LLMs might turbocharge your business. With the right approach, your organization can be well positioned to take advantage of everything this new era offers. You’ll be glad you got started now.

More TechCrunch

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

42 mins ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’

Welcome back to TechCrunch’s Week in Review. This week had two major events from OpenAI and Google. OpenAI’s spring update event saw the reveal of its new model, GPT-4o, which…

OpenAI and Google lay out their competing AI visions

When Jeffrey Wang posted to X asking if anyone wanted to go in on an order of fancy-but-affordable office nap pods, he didn’t expect the post to go viral.

With AI startups booming, nap pods and Silicon Valley hustle culture are back

OpenAI’s Superalignment team, responsible for developing ways to govern and steer “superintelligent” AI systems, was promised 20% of the company’s compute resources, according to a person from that team. But…

OpenAI created a team to control ‘superintelligent’ AI — then let it wither, source says

A new crop of early-stage startups — along with some recent VC investments — illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to…

VCs and the military are fueling self-driving startups that don’t need roads

When the founders of Sagetap, Sahil Khanna and Kevin Hughes, started working at early-stage enterprise software startups, they were surprised to find that the companies they worked at were trying…

Deal Dive: Sagetap looks to bring enterprise software sales into the 21st century

Keeping up with an industry as fast-moving as AI is a tall order. So until an AI can do it for you, here’s a handy roundup of recent stories in the world…

This Week in AI: OpenAI moves away from safety

After Apple loosened its App Store guidelines to permit game emulators, the retro game emulator Delta — an app 10 years in the making — hit the top of the…

Adobe comes after indie game emulator Delta for copying its logo

Meta is once again taking on its competitors by developing a feature that borrows concepts from others — in this case, BeReal and Snapchat. The company is developing a feature…

Meta’s latest experiment borrows from BeReal’s and Snapchat’s core ideas

Welcome to Startups Weekly! We’ve been drowning in AI news this week, with Google’s I/O setting the pace. And Elon Musk rages against the machine.

Startups Weekly: It’s the dawning of the age of AI — plus,  Musk is raging against the machine

IndieBio’s Bay Area incubator is about to debut its 15th cohort of biotech startups. We took special note of a few, which were making some major, bordering on ludicrous, claims…

IndieBio’s SF incubator lineup is making some wild biotech promises

YouTube TV has announced that its multiview feature for watching four streams at once is now available on Android phones and tablets. The Android launch comes two months after YouTube…

YouTube TV’s ‘multiview’ feature is now available on Android phones and tablets

Featured Article

Two Santa Cruz students uncover security bug that could let millions do their laundry for free

CSC ServiceWorks provides laundry machines to thousands of residential homes and universities, but the company ignored requests to fix a security bug.

2 days ago
Two Santa Cruz students uncover security bug that could let millions do their laundry for free

TechCrunch Disrupt 2024 is just around the corner, and the buzz is palpable. But what if we told you there’s a chance for you to not just attend, but also…

Harness the TechCrunch Effect: Host a Side Event at Disrupt 2024

Decks are all about telling a compelling story and Goodcarbon does a good job on that front. But there’s important information missing too.

Pitch Deck Teardown: Goodcarbon’s $5.5M seed deck

Slack is making it difficult for its customers if they want the company to stop using its data for model training.

Slack under attack over sneaky AI training policy

A Texas-based company that provides health insurance and benefit plans disclosed a data breach affecting almost 2.5 million people, some of whom had their Social Security number stolen. WebTPA said…

Healthcare company WebTPA discloses breach affecting 2.5 million people

Featured Article

Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Microsoft won’t be facing antitrust scrutiny in the U.K. over its recent investment into French AI startup Mistral AI.

2 days ago
Microsoft dodges UK antitrust scrutiny over its Mistral AI stake

Ember has partnered with HSBC in the U.K. so that the bank’s business customers can access Ember’s services from their online accounts.

Embedded finance is still trendy as accounting automation startup Ember partners with HSBC UK

Kudos uses AI to figure out consumer spending habits so it can then provide more personalized financial advice, like maximizing rewards and utilizing credit effectively.

Kudos lands $10M for an AI smart wallet that picks the best credit card for purchases

The EU’s warning comes after Microsoft failed to respond to a legally binding request for information that focused on its generative AI tools.

EU warns Microsoft it could be fined billions over missing GenAI risk info

The prospects for troubled banking-as-a-service startup Synapse have gone from bad to worse this week after a United States Trustee filed an emergency motion on Wednesday.  The trustee is asking…

A US Trustee wants troubled fintech Synapse to be liquidated via Chapter 7 bankruptcy, cites ‘gross mismanagement’

U.K.-based Seraphim Space is spinning up its 13th accelerator program, with nine participating companies working on a range of tech from propulsion to in-space manufacturing and space situational awareness. The…

Seraphim’s latest space accelerator welcomes nine companies

OpenAI has reached a deal with Reddit to use the social news site’s data for training AI models. In a blog post on OpenAI’s press relations site, the company said…

OpenAI inks deal to train AI on Reddit data

X users will now be able to discover posts from new Communities that are trending directly from an Explore tab within the section.

X pushes more users to Communities

For Mark Zuckerberg’s 40th birthday, his wife got him a photoshoot. Zuckerberg gives the camera a sly smile as he sits amid a carefully crafted re-creation of his childhood bedroom.…

Mark Zuckerberg’s makeover: Midlife crisis or carefully crafted rebrand?

Strava announced a slew of features, including AI to weed out leaderboard cheats, a new ‘family’ subscription plan, dark mode and more.

Strava taps AI to weed out leaderboard cheats, unveils ‘family’ plan, dark mode and more