So I did the India-specific analysis for a tier-3 city. Here, electricity costs 1/3rd of the US version, and you also get solar subsidy up to a certain amount.

https://shorturl.at/q6gRE

tldr;

Hardware deprecation costs are the major factor.

But, if we assume ZERO hardware deprecation (not realistic), then local inference becomes super cheap.. roughly, 90%+ cheaper.

Third case: the break-even happens only if we can get at the very very very least, 8.7 years of useful hardware life. A more realistic number, however, when working 8 hrs/day and not of 24 hrs/day, is around 25 years.

So, for now, local inference is preferable if you deeply care about privacy. From cost perspective, it's still not there.

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datadrivenangel 3 hours ago | parent [-]

I think your link is broken? Would love to see the analysis as well.

	▲	freakynit 3 hours ago \| parent [-]
		not much of an analysis really.. just simple math... anyways, that markdown share site takes around 5-10 seconds to load the page.. so, just hang on a bit more time :)