What are bitnet models and what does that change in a nutshell?

Read the pitch here: https://github.com/ridgerchu/matmulfreellm

Basically, using ternary weights, all inference-time matrix multiplication can be replaced with much simpler matrix addition. This is theoretically more efficient on GPUs, and astronomically more efficient on dedicated hardware (as adders take up a fraction of the space as multipliers in silicon). This would be particularly fantastic for, say, local inference on smartphones or laptop ASICs.

The catch is no one has (publicly) risked a couple of million dollars to test it with a large model, as (so far) training it isn't more efficient than "regular" LLMs.

Doesn’t Open AI just have the same efficiency issue as computing in general due to hardware from older nodes?

No one really knows, because they're so closed and opaque!

But it appears that their models perform relatively poorly for thier "size." Qwen is nearly matching GPT-4 in some metrics, yet is probably an order of magnitude smaller, while Google/Claude and some Chinese models are also pulling ahead.