[clusterhacks]

--what this means for the valuation of the AI companies

Probably nothing. Most users have no idea what an LLM is or how it runs. Anecdotally speaking, I see many LLM users default to whatever their day job provides to them. And even slightly more sophisticated users seem ok with paying for their openai or anthropic subscriptions.

Maybe we will see a small but dedicated group of open weight model users who prefer local llm, but everybody else will just consume from the big providers? The scenario might look something like OS choices today - a small, committed group of Linux users vs the vast majority of other users running Windows, MacOS, or Chrome?

[exhilaration]

Prices from OpenAI and Anthropic have really jumped in the past month. I work for a big giant company and our Github co-pilot costs increased as of today, June 1st. Our internal estimates are that our bill will double or triple. How much are we willing to pay? I don't know, but nobody wants to be "left behind".

I think there's actually a big market opportunity here. Somebody, like Dell or HP, should start selling turnkey on-prem LLM servers.