Neither cloud computing nor AI are good long term businesses. Yes, there's money to be made in the short term but only because there's more demand than there is supply for high-end chips and bleeding edge AI models. Once supply chains catch up and the open models get good enough to do everything we need them for, everyone will be able to afford to compute on prem. It could be well over a decade before that happens but it won't be forever.

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echelon 8 hours ago | parent [-]

This is my thinking too. Local is going to be huge when it happens.

Once we have sufficient VRAM and speed, we're going to fly - not run - to a whole new class of applications. Things that just don't work in the cloud for one reason or another.

- The true power of a "World Model" like Genie 2 will never happen with latency. That will have to run locally. We want local AI game engines [1] we can step into like holodecks.

- Nobody is going to want to call OpenAI or Grok with personal matters. People want a local AI "girlfriend" or whatever. That shit needs to stay private for people.

- Image and video gen is a never ending cycle of "Our Content Filters Have Detected Harmful Prompts". You can't make totally safe for work images or videos of kids, men in atypical roles (men with their children = abuse!), women in atypical roles (woman in danger = abuse!), LGBT relationships, world leaders, celebs, popular IPs, etc. Everyone I interact with constantly brings these issues up.

- Robots will have to be local. You can't solve 6+DOF, dance routines, cutting food, etc. with 500ms latency.

- The RIAA is going door to door taking down each major music AI service. Suno just recently had two Billboard chart-topping songs? Congrats - now the RIAA lawyers have sued them and reached a settlement. Suno now won't let you download the music you create. They're going to remove the existing models and replace them with "officially licensed" musicians like Katy Perry® and Travis Scott™. You won't retain rights to anything you mix. This totally sucks and music models need to be 100% local and outside of their reach.

[1] Also, you have to see this mind-blowing interactive browser demo from 2022. It still makes my jaw drop: https://madebyoll.in/posts/game_emulation_via_dnn/

	▲	foobarian 7 hours ago \| parent [-]
		> You can't solve 6+DOF, dance routines, cutting food, etc. with 500ms latency. Hopefully it's just network propagation that creates that latency, otherwise local models will never beat the fanout in a massive datacenter.