There's waayyyy too much money betting on that not happening, to the point I feel there'll be regulations popping up for "safety reasons" etc to ensure the big players control this.

3/4 of Microsoft's BUILD conference the past two days were about local AI, foundry local and Windows ML along with a big section in the keynote about running local workloads on their new hardware with Nvidia. Say what you want about Microsoft's reputation, but they are a "big player" and seem to be moving in the direction of local AI first.