Real Python Podcast | Large Language Models on the edge of the scaling laws

September 5, 2025

Cover image by Real Python Podcast

What’s happening with the latest releases of large language models? Is the industry hitting the edge of the scaling laws, and do the current benchmarks provide reliable performance assessments? In this episode, I return to the Real Python podcast to discuss the current state of LLM releases.

The most recent release of GPT-5 has been a wake-up call for the LLM industry. We discuss how the current scaling of these systems is reaching a diminishing edge. I also share how many AI model assessments and benchmarks are flawed. We also take a sober look at the productivity gains from using these tools for software development within companies.

We discuss how newer developers should consider additional factors when looking at the current job market. I dig into how economic changes and rising interest rates are influencing layoffs and hiring freezes. Then we share a wide collection of resources for you to continue exploring these topics.