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News/The Shadow Price of Intelligence: Quality Degradation in LLM Inference as a Supply Chain Problem
arxiv
PublishedSeptember 1, 2026 at 4:00 AM

The Shadow Price of Intelligence: Quality Degradation in LLM Inference as a Supply Chain Problem

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arXiv:2608.23986v2 Announce Type: replace-cross Abstract: Large language model providers are compute constrained, and their universal response to congestion is to degrade service: route queries to smaller models, cut reasoning effort, truncate context. The industry's accounting says this saves money

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