256k tokens for both the MBP and the 4090

I’ve worked, for a long time professionally, in the open model space for 3 years and up to 2 months ago I would have agreed with you. But it’s empirically not the case today. These models (combined with a good harness) have dramatically improved in both power and performance.

Gemma 4 was a major improvement is self-hostable local models and Qwen-3.6-A34B is a beast, and runs great on an MBP (and insanely well on a 4090).

The biggest lift is combining these models with a good agent harness (personally prefer Hermes agent). But I’ve found in practice they’re really not benchmaxxing. I’ve had these agents successfully hand a few non-trivial research projects that I wouldn’t have been able to accomplish as successfully even last year.

When you add in the open-but-not local models, Kimi, GLM, Minimax, you have a lot of very nice options. For personal use anything I don’t use local models for I give to my Kimi 2.6 powered agent.

Kimi k2.6 is about on par with GPT 5.2 so I’d say open weight models are about 6 months behind.

The Chinese models should stay close on a lag. They’re doing a ton of distillation that, realistically, I’m not sure the American frontiers can stop.

Have you looked into DwarfStar 4?

using them you kind of get a feeling for skill level and can extrapolate that better than juiced benchmarks.

I think hardware prices will come back down once we start seeing more efficiency improvements in models and hardware, and once more people and companies self-host models (which seems to be happening more and more these days). I think the massive infra/hardware expenditures of OpenAI and the like are going to end up unnecessary, leading to hardware price drops.

Non-cynically: the frontier providers have a projection for demand.

Cynically: it’s become an executive-level gpu measuring contest. If you’re not making huge commitments on data centers, you can’t be a serious player.

Realistically: It’s a mix of the two. The recent Claude caps for agentic usage suggest that demand exceeded their immediate compute supply. That they can alleviate it with additional capacity from the existing and small-ish xAI facility suggests that either demand may not be rising quite as fast as anticipated, that they’re okay in the short term until more capacity comes online, or a mix of both.

Open questions:

1. At what price point does demand fall, and are the frontier providers overall profitable before that price point?

2. At what price/performance point do on-prem local models make more sense than cloud models?

I print documents and photos at home regularly but I still contract out to dedicated print shops.

The print shop can’t replicate the practicality of local printing and I can’t replicate their scale of investment. Both coexist perfectly.

Agents

>I don't believe there's that big of a market for local AI. Most people don't care that much,

I agree that the market for local AI is basically limited to nerds at this point, but that's because nobody's really explained why local AI is a good thing and also because the vast majority of people need the $20 paid plan at most. How much time and money would it take to get something half as good as OpenAIs products running locally?

Another victim of Goldratt's Theory of Constraints. Some things are more important to optimize for than MATMULs per Watt. What that is I leave as an exercise to the student. May you realize what it is before it is too late.

Within 5-10 years you're going to see a box like one of those AMD Halo nodes running homes.

They'll be controlling lights and temperature, they'll be adding calendar reminders that show up on your phone and your fridge. Your phone and devices might sync pictures and videos there instead of the large cloud providers. They'll also be a media server, able to stream and multiplex whatever content you want through the home. They'll also be a VPN endpoint, likely your home router, maybe also a wifi access point.

I think this makes quite a bit of sense. I don't think they'll be ubiquitous, but they could be.

This distributes the power demand where local solar generation can supplement , gives the home user a lot of control, and claims overship of the user data from big tech.

Maybe I'm imagining things but this is what I think is coming.

It's the lmm/data heart of the home. A useful digital tool.

Are you serious? It’s multiple nodes to run a frontier model (a node is 8x GPUs), and they aren’t running on H100s. You are looking at 32+ GPUs.