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The AI race is shifting from bigger models to cheaper, smarter systems

July 11, 2026
Source: cnbc.com cnbc.com
News Snapshot:
AI companies are moving beyond a simple race over who has the biggest or newest model. Perplexity CEO Aravind Srinivas says the real product is becoming the system that chooses which model to use for each task. Benchmark’s Peter Fenton says open-weight models could soon handle most AI usage, putting pressure on the economics of the biggest model providers. For the past two years, the artificial intelligence race has been easy to score: bigger models, better benchmarks and whichever company could claim the lead, at least until the next launch. That scorecard is starting to look incomplete. As companies move...
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