"The market for local models is always gonna be a small niche, primarily for the paranoid."

Have you ever heard of industrial espionage? Pr privacy regulations? Or military applications?

(Also the US military runs claude as a local model)

The goal of web hosting is to provide low latency wide availability to many users.

AI in this context has a very different goal as a tool for individual users.

You wouldn't say that hosting instances of Photoshop on servers and charging for usage is a long term viable business would you? Even if current consumer computers struggled to run Photoshop.

I don't see an issue with the comparison, I don't think it is meant to be a 1 to 1 or anything, just an illustration of how consumers are overwhelmingly lazy.

I'd take issue with the statement that it is for the paranoid, but I guess it might be a defense mechanism because of course i am interested in local models. If my new workflow is going to be dependent on 3 companies, I'd prefer if there is a light at the end of the tunnel that breaks us free.

>"But people still use AWS"

I do not, I self host. My current client is also got rid from AWS packing up nice savings as a result