Even inside the US, many businesses are looking at local LLMs because they don't want to get caught by USGOV restricting access to "frontier" AI models.

I really don't see any situation where local AI doesn't absolutely eat the big labs' lunch. They can't compete and the only way it makes any sense for them to exist is if the government somehow tries to ban local AI, which likely wouldn't work in the first place.

That won't stop them from trying, and is exactly why you see all the fearmongering.