Tomasz Tunguz · 18 August 2026 · Operating Insight

Birds Don't Fly Like Planes. Neither Does AI.

Tomasz Tunguz, MD @ Theory

Smaller open-source language models running locally can match cloud models' output quality by reasoning more intensively, using different inference strategies rather than just scale. A practical benchmark of venture-capital tasks shows Qwen3.8-27B achieving parity with DeepSeek V4 Cloud, trading latency for capability.

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Topics: AI (Horizontal) · AI Infrastructure · Developer Tools

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