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i think a lot of that is for government and enterprise use. even for personal computers themselves (i.e.: laptops) they're usually loss leaders, they don't turn profit. You can run a server (and many do) on laptops, but that didn't replace cloud services or server hosting. You can't store enormous amounts of data on your laptop/phone for the llm to use, or access tools the app dev wouldn't want exposed on untrusted devices. The whole replacing people angle is just the short term use case the more ghoulish executives are thinking about. In practice, lots of lots of new use cases have been made possible by LLMs. A lot of which can be done locally. But whatever capacity you have locally, they can have more of and for cheaper, and they manage the model instead of you doing it yourself. I think you put it nicely though, their moat will be thinned, and I doubt they'll be as profitable as their funding suggests, but at the same time the demand for them won't go away either. I don't know if OpenAI and Anthropic will be viable, but I'm nearly certain Deepseek is. The tipping point will be power usage, if a local llm can run the same workload for less power that would be a game changer. Nvidia might get decimated, but even Google and others have moved on from GPUs already, they have faster and more power efficient TPUs. Add to that network bandwidth and availability issues, their moat remains. Also consider that even for graphics capabilities, user devices just don't have a consistent spec to make things like widespread 3d graphics and webgl usage viable. Someone's cheap android phone will never run a local llm reliably,same as it won't a 3d game. even if they have a high-end iphone, network providers aren't always performant as they are in western countries, and then there are people that won't want to install your app or local software, and then browser based exposure of the capability to sites which will have similar hardware spec issues, OS instabilities, competing tabs,etc... |