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Indian fintech Jar turns profitable by enabling millions to save in gold

Chase by Chase
September 25, 2025
Reading Time: 3 mins read
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# Beyond Density: Why Mixture of Experts is Reshaping Large Language Models

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The release of models like Mixtral 8x7B has ignited a firestorm of discussion, and for good reason. For years, the path to more powerful Large Language Models (LLMs) seemed to be a simple, if punishingly expensive, one: make them bigger. This “dense” model approach, where every single parameter is engaged to process every single token, has led to incredible breakthroughs but is rapidly hitting a computational ceiling. The sheer cost, in both training and inference FLOPs, of a 1-trillion parameter dense model is astronomical.

Enter the Mixture of Experts (MoE) architecture—an elegant solution that fundamentally changes the scaling equation. MoE isn’t new, with research dating back decades, but its recent successful implementation in massive LLMs represents a pivotal shift. It proposes a tantalizing bargain: achieve the performance of an enormous model with the computational cost of a much smaller one.

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### How MoE Changes the Game: Sparse Activation

At its core, a dense Transformer model is like a committee where every member must vote on every decision, no matter how trivial. It’s thorough, but incredibly inefficient. An MoE model, by contrast, is like a well-run organization with specialized departments.

Here’s a simplified breakdown of the architecture within an MoE Transformer layer:

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1. **A Pool of “Experts”:** Instead of one large Feed-Forward Network (FFN), an MoE layer contains multiple smaller FFNs, called “experts.” For example, in Mixtral 8x7B, there are eight distinct experts within each MoE layer.

2. **The Gating Network (or “Router”):** This is the crucial component. For each token being processed, the gating network—a small neural network itself—looks at the token’s context and decides which one or two experts are best suited to handle it.

3. **Selective Processing:** The token is then sent *only* to the selected experts (e.g., the top two in Mixtral’s case). All other experts in that layer remain dormant, consuming no compute for that specific token.

4. **Weighted Combination:** The outputs from the activated experts are then combined, typically via a weighted sum determined by the gating network’s routing decisions.

This process is called **sparse activation**. While a model like Mixtral 8x7B technically has ~47 billion parameters in total, it only activates around 13 billion parameters during inference for any given token. This is how it achieves performance comparable to a 70B-parameter dense model (like Llama 2 70B) while being significantly faster and cheaper to run.

### The Inevitable Trade-Offs: No Such Thing as a Free Lunch

While sparse activation feels like magic, it’s a brilliant engineering trade-off. You are essentially swapping one resource constraint for another.

* **Compute (FLOPs) vs. Memory (VRAM):** This is the primary trade-off. MoE drastically reduces the Floating Point Operations (FLOPs) required for inference, which translates to higher speed. However, all the parameters of all the experts must be loaded into memory (VRAM) to be available when the router calls upon them. A model with a 100B parameter count—even if it only uses 15B per token—still requires enough VRAM to hold all 100B parameters. This makes memory capacity, not raw processing power, the main hardware bottleneck for running large MoE models.

* **Communication Overhead:** In a distributed setting across multiple GPUs, the router must efficiently send tokens to the specific GPUs where their assigned experts reside. This inter-GPU communication can introduce latency and become a bottleneck if not managed perfectly, adding complexity to the inference and training infrastructure.

* **Training Instability:** Training MoE models is notoriously difficult. A common failure mode is when the gating network becomes “unbalanced,” learning to favor a small subset of “popular” experts while neglecting others. This starves the underutilized experts of training signals, leading to a collapse in model quality. Sophisticated techniques, such as adding a “load balancing loss” that encourages the router to distribute tokens evenly, are required to ensure all experts learn effectively.

—

### A Paradigm Shift in Scaling

The move from dense models to Mixture of Experts architectures is more than just an optimization; it’s a fundamental shift in how we think about scaling AI. It acknowledges that brute-force computation is not a sustainable long-term strategy. Instead, the future lies in architectural intelligence—building systems that can dynamically allocate resources to where they are most needed.

MoE is not a silver bullet, but it provides a clear and viable path toward multi-trillion parameter models that remain computationally feasible. As research progresses, we can expect to see more sophisticated routing algorithms, more specialized experts, and hardware better optimized for these sparse workloads. The era of density is giving way to the era of specialization, and it’s a far more efficient and exciting future for AI.

This post is based on the original article at https://techcrunch.com/2025/09/18/indian-fintech-jar-turns-profitable-by-helping-millions-save-in-gold/.

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