Over the past few weeks, I've been putting together a small, 6.5M param model. It is conversational, does tool calling, RAG, mathematical modeling/calculations, basic physical simulations, and multi-step chained reasoning. It's still very much _not_ a frontier model. But it already does more than I could get a qwen 2.5 0.5b param model to do with finetuning just 1 year ago
Most of the improvements come from being able to direct claude to apply different ideas from recent research that keep coming out. AI labs seem to be focused on 1B+ models, so not much comes out about small models, but many of the things being discovered in research with billion+ model, are adaptable to small ones as well
Been reading this for years now. Seems both, bigger models optimized for scale AND smaller models optimized for single machines, keep on being released. I don't think it's changing, different markets.