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Equation 37 · Part 6 · The Real Economics of Shipping a Model to a Device

=

Qdevice∗=(Cdev+U)/(ccloud−cd)Q^{*}_{\mathrm{device}} = (C_{\mathrm{dev}} + U) / (c_{\mathrm{cloud}} - c_{d})
=

What this part means

The expressions on both sides represent the same quantity under the stated assumptions.

Its job in the formula

The equals sign connects the complete expression on the left with the complete expression on the right. Both sides must have compatible units.

The passage around this formula

The marginal-cost argument for on-device inference is not wrong; it is one term in a four-term equation, and the other three — variant-matrix engineering, distillation-versus-teacher economics, and update-distribution bandwidth — are each individually documented at real, checkable magnitudes in this article. Distillation itself is nearly always worth doing: disclosed training runs in the hundreds of dollars clear their own break-even point against even modest cloud query volumes almost immediately. Placing the result on a device is a separate, harder calculation, one that rises with every additional tier a release has to validate and every device already in the field that has to receive the…

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Learn the underlying idea

An equals sign says that the expression on its left and the expression on its right have the same value under the stated definitions and assumptions.

Open the illustrated equality: what the equals sign claims guide →

The article lists its research sources here.