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▲ jacquesm 2 hours ago

It's absolutely true. I have three different setups here, a rig with 8 gpus that I use in either one of two modes (all 8, very heavy model or just one much lighter) and two DGX sparks. I haven't used a paid model in months. Sure, they use a few more tokens and the results may be slightly less good (but this doesn't really matter because I'm still in the loop so it is easy to correct). But the fact that I'm not sharing my work with the paid providers is much more to my liking than having big brother looking over my shoulder at every step and occasionally giving me the 'I can't let you do that, Jacques' treatment.

▲gorgoiler 26 minutes ago | parent | next [-]

Gaming used to be done in arcades for 25c a play*.

Over time NeoGeo realized they could sell you the hardware to play at home (“on-prem”) at arcade quality albeit at a price out of reach to most people. Alongside them, Nintendo and Atari gave you 80% of the fun at 20% of the cost. History will view games arcades as a flash in the pan compared to gaming at home.

Namco, Capcom, and Konami went into selling software instead of hardware but it feels hard to imagine buying a home copy of Fable** for $X,000 any time soon.

⸻

* That’s for video games. In fairground arcades you’d literally pay for tokens then use tokens for play. The analogy almost writes itself.

** The Anthropic model, not the video game.

▲otterley 2 hours ago | parent | prev | next [-]

How much did you shell out for this setup? What’s the TTFT and the output tokens/sec rate? How much electricity does it consume?

▲jacquesm 2 hours ago | parent | next [-]

Working on a blog post to document it all, but that will take a few more days. The short version: the big rig is probably $25K, ttft is dependent on how much prefill you have but typically a couple of seconds (2K prefill/sec in one setup, about 500 in the other), tgs 100 to 150 or so depending on what it is doing and how well the speculative decoder works with the current context. Electricity is pretty bad, full tilt it's about 2500W or so but I've power limited it to 1500 to keep it civil. It is not cheaper than using a frontier lab (or at least, I don't think it is), but the independence bit is the important part for me and I don't care if that carries a surcharge, even if it is a substantial one.

▲gr_norm an hour ago | parent | next [-]

The benefit of the agent working firstly for you rather than for Anthropic or OpenAI will become increasingly apparent. We're already seeing signs: remember when Anthropic openly promised to have Claude sabotage people using it to create competitors? And OpenAI is looking for revenue opportunities from advertising, which can't end well for their users.

Just think of how user-hostile other online services have gotten, and imagine how acutely painful the proprietary LLM providers could make theirs. Thankfully, open models provide some counterbalance.

▲glassresearch an hour ago | parent | prev | next [-]

I'm not saying your approach is wrong - but for my workloads, it makes a lot more sense to just pay for a decade (!!!) of Claude Code 20x Max.

▲segmondy 39 minutes ago | parent | next [-]

My local model never says no. I never get banned. If I want to do security stuff, reverse engine, there it goes! Do I wanna chat about politics? No problem! Do I want it to analyze medical stuff? I don't get to hear that it's not a doctor and I should call 911. Do I want to explore legal docs, no problem! There are lots of things that cloud models will say no to! I read that don't even agree to help with advanced biology and chemistry topic much. I also never run out of tokens, no 5 hr limit. I can run it 24/7. I don't run out of tokens. I can run 16 sub agents at the same time, non stop! 1-4 billion tokens a month? No problem. Any agent harness I want! No restrictions. Privacy all day. My own true system prompt, not something someone has determined, no filters. Furthermore, there are many open weight cloud models that don't have equivalent online. For a while before cloud models got good at math, the best model at math was DeepSeekv2 Math and there was no API. The only way to use it was to run local. All sorts of audio models, image/video models, etc. No multiple subscription needed. Private UI for my family, kids included (I can guard what kids infer). Got a friend that really needs some tokens? I give em access through private VPN. Telling someone that they are paying for decades of Claude for local AI is like telling someone they are paying for decades of public transport when they buy a car. Sure, you are right, but ...

▲jacquesm 37 minutes ago | parent [-]

Exactly, that's the spirit. I pool the resources with some friends as well.

▲jacquesm an hour ago | parent | prev | next [-]

If I want to go out of business that is what I would do. Most of the data I have here could never be shipped to a service provider, I'd be in lawsuits for the next decade or so and die bankrupt.

▲greesil an hour ago | parent | next [-]

Okay man I've got to ask, what kind of data are we talking about? Legal? Medical?

I've heard that there are legal software platforms like Clio that offer AI products, not sure what just eavesdropping on some lawyers at the bar.

▲jacquesm an hour ago | parent [-]

http://www.modularcompany.com/

Companies pretty much give us the full overview of what they have from a technical perspective (and often much more than that), we sign NDAs with investors that have serious teeth in them. The data they share with us would not be disclosed under any other circumstance and even our reports are shared only with the clients.

It's a nice little business. I'm not going to risk offending my customers for convenience or to save some money.

▲greesil 14 minutes ago | parent | next [-]

Holy fuck you have a lot of karma

▲ an hour ago | parent | prev [-]
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▲calmingsolitude an hour ago | parent | prev | next [-]

LLM subscriptions are heavily subsidized. I’d be surprised if Claude 20x costed the same after a decade.

▲benoau an hour ago | parent | prev | next [-]

If you know you will pay Claude a few thousand bucks a year a decade adds up too, owning the hardware could just as well end up cheaper because you can sell it or as others have alluded the price to rent could get much worse.

▲dylan604 33 minutes ago | parent | next [-]

Would you really expect to be using the same hardware over the course of that decade? One of the biggest drawbacks to using on-prem hardware is keeping up with the upgrades. Leasing upgrade cycles are a thing for businesses, but for someone at home it seems like later in the decade the local system will be showing its age.

▲jacquesm 5 minutes ago | parent [-]

The 3090's I have would sell for more than new today... for the next couple of years or so it will be pretty bad on the hardware front. Until there is more RAM manufacturing capacity and NV has a credible competitor I don't think it will get better.

▲jacquesm an hour ago | parent | prev [-]

Heh, the hardware I bought I could easily sell for 2x so you may actually end up making money. Though I hope that that won't last.

▲tjwebbnorfolk an hour ago | parent | prev [-]

The bet we (self-hosters) are making is that once these companies IPO, they will be forced to do whatever they have to do to make money. i.e. price increases, more throttling of subscription non-usage-based accoutns, etc.

They are subsidizing all of us to the tune of $billions in losses per month. That can't go on for a decade. Probably not even for another 18 months.

I still use all the tokens Claude will give me on the max plan. But I also run deepseek v4 locally for overflow and for... contingencies.

▲selcuka 2 hours ago | parent | prev [-]

> It is not cheaper than using a frontier lab

Are you comparing to subscription prices or API prices? Because if it's the former it won't last forever.

▲jacquesm an hour ago | parent [-]

True, they're subsidized, I'm not. But I don't have their utilization so I figure it would always be more expensive to run this locally.

▲bitexploder an hour ago | parent | prev [-]

I mean, I just have 4xV100S GPU and a Macbook Pro w/48GB of RAM and I find it kind of amazing.

My server can run Qwen Flash Next at 500 t/s aggregate (about 200 t/s single user). It's pretty great. I use it for local coding and all my worker agents. It is about as reliable as Sonnet 5 for agentic coding. I make 3D models, keep the home network and server updated, fully built ansible files.

You do NOT need 20K in hardware to run these models reliably. I built my own inference engine from scratch for fun. You can run Strata on 16-32GB cards at very respectable token rates if you have the standard RAM to go with it. I strongly encourage people to go use this model on OpenRouter and try it out for tasks.

I also have a somewhat lobotimized quant of GLM Flash 5.3 working and it's pretty decent too.

▲jacquesm an hour ago | parent | next [-]

V100S is a very good card for some workloads. And they were cheap as well.

I have 240G VRAM total which is a good reason why that rig cost as much as it does, and if I were to build it at today's prices it would be even more expensive.

▲bitexploder an hour ago | parent [-]

I got mine just a few weeks ago for about $750 each. I am a decent programmer and have Opus optimizing the inference engine. I know enough to keep it on track, but GPU programming is something I have literally never done, before, but now I know enough about Volta and how to optimize it to be dangerous.

Kind of ironic, but it's the only way. I just really like this as an option. For a household LLM I have the IQ4_K_XL quant and plenty of capacity for everything you could want in a household LLM and it is trustworthy enough to not rm -rf /, etc.

And yeah that is a really nice amount! You can run and compose a lot of interesting models, vision capabilities. IDK. Plus this level of model is far more interactive in the sense that it can implement a well scoped ticket or unit of work but its not going to magically just figure some things out without guidance or a spec :)

▲jacquesm 44 minutes ago | parent [-]

You got lucky :)

I tried getting some 170's when I first heard about that unlock but they were already unobtanium by then. That would have been a nice way to add a lot of VRAM.

GLM 5.3 runs pretty comfortably on this rig, even with large context.

▲glyphRain an hour ago | parent | prev [-]

[dead]

▲dansquizsoft 2 hours ago | parent | prev [-]

> Sure, they use a few more tokens and the results may be slightly less good (but this doesn't really matter because I'm still in the loop so it is easy to correct)

I can't wait to use models that are 'slightly less good' when I am at work instead of something like Fable that lets me focus on the problem at hand as much as possible rather than also spending additional effort correcting for the tool I am using...

▲sp527 2 hours ago | parent [-]

You need to reread what was written. No one is proposing to take away your right to leak proprietary edge to the rapacious frontier labs that need to eat most of the economy in order to survive.