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Telo raises $20 million to build tiny electric trucks for cities

Chase by Chase
September 25, 2025
Reading Time: 3 mins read
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# Smarter, Not Just Bigger: The Rise of Mixture-of-Experts in AI

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For the past several years, a simple mantra has dominated the development of large language models: scaling laws. The formula seemed straightforward—more data, more parameters, and more compute would inevitably lead to more capable models. This brute-force approach gave us behemoths like GPT-3 and PaLM, pushing the boundaries of what AI could achieve. Yet, we are now confronting the physical and economic limits of this paradigm. The computational cost of training and running these monolithic, dense models is staggering.

Enter a more elegant solution, an architectural shift that is quietly powering some of the most advanced models today: **Mixture-of-Experts (MoE)**. This isn’t just an incremental improvement; it’s a fundamental rethinking of how we build and scale AI, prioritizing computational efficiency without sacrificing model capacity.

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### Unpacking the Mixture-of-Experts Architecture

At its core, a dense transformer model is like a single, brilliant polymath. To answer any question, whether it’s about quantum physics or Shakespearean sonnets, it engages its entire, massive brain. Every single parameter is involved in processing every single token. While effective, it’s incredibly inefficient.

An MoE model, by contrast, operates like a committee of specialized consultants. Instead of one monolithic feed-forward network in each transformer block, an MoE layer contains two key components:

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1. **A Set of “Expert” Networks:** These are smaller, independent feed-forward networks, each with its own set of parameters. Think of one as an expert in programming languages, another in history, and a third in creative writing.
2. **A “Gating Network” or Router:** This is a small, lightweight neural network whose job is to be a project manager. For each token that enters the layer, the router analyzes it and decides which one or two experts are best suited to handle the task.

The process is remarkably efficient. As a token’s representation flows through the model, the gating network calculates a probability distribution and selects the top-k experts (in most modern implementations, k=2). Only those selected experts are activated to process the token. Their outputs are then combined, weighted by the scores the router assigned. All other experts remain dormant, consuming no computational resources for that specific token.

### The Trade-Off: Compute vs. Memory

The primary advantage of the MoE architecture is the decoupling of parameter count from computational cost (FLOPs). A model like Mixtral 8x7B can have a total of 47 billion parameters, but during inference, it only uses the active parameters of about 13B for any given token. This allows us to build models with vast knowledge (a huge total parameter count) while keeping inference latency and cost manageable.

This design introduces a fascinating engineering trade-off. While MoE models are **compute-efficient**, they are **memory-intensive**. To run inference, all the expert networks must be loaded into VRAM, even though only a fraction of them are active at any one time. This means a model with a 100B+ parameter count, even if it’s a sparse MoE, requires a significant amount of high-bandwidth memory, a constraint that impacts deployment strategies.

Furthermore, training MoE models presents unique challenges. A key problem is “load balancing.” If the gating network isn’t carefully trained, it might develop favorites, consistently sending most tokens to a small subset of experts. This leaves other experts undertrained and wastes the model’s capacity. To counteract this, researchers employ auxiliary loss functions that incentivize the router to distribute the workload evenly across all its experts, ensuring each one develops a useful specialization.

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### The Future is Sparse

The move from dense, monolithic models to sparse, expert-driven architectures represents a crucial step in the maturation of AI. It’s a pivot from brute-force scale to intelligent, efficient design. As this technology evolves, we can expect to see more sophisticated routing algorithms, dynamic expert allocation, and even hybrid models that combine dense and sparse components to optimize for specific tasks.

Mixture-of-Experts is more than a clever trick; it’s a foundational pillar for the next generation of AI systems. It demonstrates that the path forward isn’t just about making models bigger, but about making them smarter in how they use the resources they have. This is how we will build the truly powerful, efficient, and scalable AI of the future.

This post is based on the original article at https://techcrunch.com/2025/09/23/telo-raises-20-million-to-build-tiny-electric-trucks-for-cities/.

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