A Trade-off Analysis of Replacing Proprietary LLMs with Open Source SLMs in Production

Many companies rely on APIs of managed AI models such as OpenAI's GPT-4 to create AI-enabled experiences in their products. Along with the benefits of ease of use and shortened time to production, this reliance on proprietary APIs has downsides in terms of model control, performance reliability, up-time predictability, and cost. At the same time, there has been a flurry of open source small language models (SLMs) that have been made available for commercial use. However, their readiness to replace existing capabilities remains unclear, and a systematic approach to test these models is not readily available. In this paper, we present a systematic evaluation methodology for, and characterization of, modern open source SLMs and their trade-offs when replacing a proprietary LLM APIs for a real-world product feature. We have designed SLaM, an automated analysis tool that enables the quantitative and qualitative testing of product features utilizing arbitrary SLMs. Using SLaM, we examine both the quality and the performance characteristics of modern SLMs relative to an existing customer-facing OpenAI-based implementation. We find that across 9 SLMs and 29 variants, we observe competitive quality-of-results for our use case, significant performance consistency improvement, and a cost reduction of 5x-29x when compared to OpenAI GPT-4.

Scaling Down to Scale Up: A Cost-Benefit Analysis of Replacing OpenAI's GPT-4 with Self-Hosted Open Source SLMs in Production

Many companies rely on APIs of managed AI models such as OpenAI's GPT-4 to create AI-enabled experiences in their products. Along with the benefits of ease of use and shortened time to production, this reliance on proprietary APIs has downsides in terms of model control, performance reliability, up-time predictability, and cost. At the same time, there has been a flurry of open source small language models (SLMs) that have been made available for commercial use. However, their readiness to replace existing capabilities remains unclear, and a systematic approach to test these models is not readily available. In this paper, we present a systematic evaluation methodology for, and characterization of, modern open source SLMs and their trade-offs when replacing a proprietary LLM APIs for a real-world product feature. We have designed SLaM, an automated analysis tool that enables the quantitative and qualitative testing of product features utilizing arbitrary SLMs. Using SLaM, we examine both the quality and the performance characteristics of modern SLMs relative to an existing customer-facing OpenAI-based implementation. We find that across 9 SLMs and 29 variants, we observe competitive quality-of-results for our use case, significant performance consistency improvement, and a cost reduction of 5x-29x when compared to OpenAI GPT-4.

The Jaseci Programming Paradigm and Runtime Stack: Building Scale-out Production Applications Easy and Fast

Today's production scale-out applications include many sub-application components, such as storage backends, logging infrastructure and AI models. These components have drastically different characteristics, are required to work in collaboration, and interface with each other as microservices. This leads to increasingly high complexity in developing, optimizing, configuring, and deploying scale-out applications, raising the barrier to entry for most individuals and small teams. We developed a novel co-designed runtime system, Jaseci, and programming language, Jac, which aims to reduce this complexity. The key design principle throughout Jaseci's design is to raise the level of abstraction by moving as much of the scale-out data management, microservice componentization, and live update complexity into the runtime stack to be automated and optimized automatically. We use real-world AI applications to demonstrate Jaseci's benefit for application performance and developer productivity.