Today : May 09, 2025
Technology
09 May 2025

New Chip Cuts Energy Use For AI Models By 50%

Oregon State researchers unveil breakthrough in sustainable AI technology

Researchers at Oregon State University (OSU) have made a significant breakthrough in artificial intelligence technology with the development of a new chip designed to drastically reduce the energy consumption of large language models (LLMs). This innovation comes as AI applications, such as Gemini and GPT-4, have become increasingly energy-intensive, raising concerns about their environmental impact.

At the IEEE Custom Integrated Circuits Conference held in Boston, doctoral student Ramin Javadi and associate professor Tejasvi Anand unveiled the new chip, which is capable of consuming half the energy of traditional designs. "We have designed and fabricated a new chip that consumes half the energy compared to traditional designs," Javadi stated. Anand, who leads the Mixed Signal Circuits and Systems Lab at OSU, emphasized the urgency of this development, noting that the energy required to transmit a single bit of data is not decreasing at the same rate as the demand for data transmission is increasing. This imbalance is a major factor contributing to the high power consumption observed in data centers.

The new chip utilizes AI principles to enhance signal processing efficiency. Javadi explained, "Large language models need to send and receive tremendous amounts of data over wireline, copper-based communication links in data centers, and that requires significant energy. One solution is to develop more efficient wireline communication chips." The chip incorporates on-chip AI techniques to intelligently recover data by training a classifier to recognize and correct errors, a process that is traditionally power-hungry.

As AI technologies proliferate, the environmental costs associated with their operation have come under scrutiny. Large language models, which can generate text that is often indistinguishable from human writing, are particularly resource-intensive. The rapid adoption of generative AI technologies—like ChatGPT, which amassed 100 million users in just two months—has highlighted the need for more sustainable solutions. In comparison, it took mobile phones 16 years to reach a similar user base.

While LLMs have dominated the AI landscape, smaller language models (SLMs) are gaining traction as viable alternatives. Defined as models using no more than 10 to 15 billion parameters, SLMs are seen as more cost-effective and secure, potentially offering greater privacy since they can be trained on private data. They also avoid some of the drawbacks associated with LLMs, such as their significant resource demands and the high costs associated with cloud services.

According to Birgi Tamersoy from Gartner, the trend toward smaller models is evident. He remarked, "In the small language space, we are seeing small getting smaller. From an application perspective, we still see the 10 to 15 billion range as small, and there is a mid-range category." This shift towards SLMs is not only about reducing costs but also about improving efficiency. For example, Microsoft’s Phi-1 model, which operates on only 1.3 billion parameters, has been shown to outperform larger models in specific tasks, like writing Python code.

As organizations explore the potential of SLMs, the balance between performance and resource utilization becomes increasingly important. Gianluca Barletta at PA Consulting noted, "There is a need for cost evaluation. LLMs tend to be more costly to run than SLMs." This sentiment echoes throughout the industry, as many companies are now considering a hybrid approach, utilizing both LLMs and SLMs to optimize their AI capabilities.

The implications of these developments extend beyond just cost and efficiency. The environmental impact of AI technologies is a growing concern. As Tal Zarfati from JFrog pointed out, the ability to run smaller models on edge devices—such as smartphones and IoT devices—can significantly reduce the carbon footprint associated with AI operations.

In addition to energy efficiency, researchers are also investigating the social behaviors of LLMs through the lens of behavioral game theory. A recent study examined how LLMs interact in repeated games, revealing that while they excel in self-interested scenarios, they struggle in coordination tasks. The study found that models like GPT-4 performed well in competitive games, such as the iterated Prisoner's Dilemma, but exhibited suboptimal behavior in coordination games like the Battle of the Sexes.

These findings raise critical questions about the future of LLMs and their role in human-AI interactions. The research suggests that LLMs, including GPT-4, tend to be unforgiving in competitive scenarios, often defecting after a single negative interaction. However, when prompted to predict their opponent's moves, these models showed improved coordination abilities.

Human participants in the study, who played against LLMs, reported a higher likelihood of perceiving the SCoT-prompted model as human-like compared to the base version. This indicates that enhancing the social cognition of LLMs through prompting techniques could lead to more effective and pleasant interactions between humans and AI.

As AI technologies continue to evolve, the integration of energy-efficient designs, like the new chip developed at OSU, alongside the exploration of smaller, specialized models, offers a promising avenue for sustainable AI development. The ability to balance performance, cost, and environmental impact will be crucial as industries increasingly rely on AI technologies.

In summary, the advancements in chip technology and the rise of smaller language models represent a pivotal moment in the AI landscape, addressing both the efficiency and sustainability challenges posed by large language models. The ongoing research into LLM behaviors further underscores the importance of understanding how these systems interact with each other and with humans, paving the way for more effective AI applications in the future.