Comment by motoxpro

So you've got that market. Let's call it the demand BY knowledge workers to do the work. You've also got:

2. The companies themselves buying tokens for operations to make the work more efficent. e.g. Salesforce agent or Microsoft Office agent or random saas inventory agent. (and if you say those will go away (which I don't believe), it's even more bullish. The tokens just go to someone vibe coding XYZ, which is EVEN MORE than if you were to buy saas because it's SaaS product x Companies that built it instead of just one)

3. The companies SELLING tokens. This is also new markets like schools and small business (e.g. the local gas station buying an inventory tool)

4. The consumers "buying" (I put in quotes because it can be subsidised but the company) through chatgpt, strava, instagram/netflix recommendation, etc.

Local models still take compute, and while it may be cheaper, it is the same argument of on prem vs cloud. No one operates on prem unless you HAVE to for regulatory. Margins will come down and you just spin up a GCP/OpenAI/Anthropic agent.

It may be "cheaper" but rationally its better to pay someone to manage it. Thats why Hetzner only had $367M in revneue (a lot but tiny compared to managed services)