[zozbot234]

Open weight models allow for repurposing existing hardware locally, and there's a lot of it around - far more than the amount of new RAM being supplied. So they add some short-term downward pressure to the price. (But not very much, since these datacenter builds are long-term investments that are targeted at eventually running far larger models.)

[fleventynine]

If regular people can repurpose old hardware, so can shared providers, who can extract more value from the hardware and thus afford to pay more.

In a constrained market, supply and demand favors folks who can most efficiently extract rent. Local models only make sense in a world with abundant compute and energy.