Comment by majormajor

Buying "hundreds of thousands in hardware" sounds like a lot but many companies - especially software companies - already do that if they have 100+ employees.

Running software in the cloud gives you certain reliability and scaling advantages that would be very hard to replicate locally. Running some code agents in the cloud vs local hardware, if the local hardware gets "good enough," breaks the other way - offline usage, alone, would be hugely valuable to many people and companies.

It'd be very interesting to see where various players would decide to make a call "local is good enough" though. Buying the hardware isn't a small bet, if it's not something that ends up as part of your standard computer.