I'm not going to watch the video
I like most context in text rather than video form
but while I will very well believe that:
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It's possible to optimize LLMs to make smaller models more effective than they are today. It would be very surprising if they were already optimal, given that the field is immature.
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It's possible to do a series of smaller, specialized models and keep models not-relevant to the current context unloaded from VRAM
I believe that the "splitting into smaller specialized networks" approach is referred to as Mixture of Experts. This should improve memory efficiency for many problems.
...this is countered by the fact that once you free up resources, I also suspect that you can then go use those now-available resources to improve the model by shoveling more data into the model. And while there might be diminishing returns, I very much doubt that there is a hard cap on which one can get better results by throwing more knowledge at a problem.