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From an economic standpoint those are both very good reasons, because:

1. Burning the planet on your servers is expensive, offloading it to a client-side LLM is not.

2. Ethics means risk means you won't be SOC compliant, your legal department will be mad, your users will be mad, etc.

The current status-quo of a few giant LLMs on supercomputers operated by OpenAI and Google is basically destined to fail, in my eyes. At least from a business standpoint. Consumer stuff might be different.