Comment by Gareth321

With all due respect, it sounds like you believe that when an asset is depreciated, it means the company gets to claim back the pro rata capex amount in tax. That's not remotely how it works. It's a business cost. Revenue minus costs equals profit, and that is taxable. Depreciation allows the business to declare lower profit (and thus pay less tax), but note that *the business is making less profit.* That's bad.

I'm not challenging the concept of depreciation. It's a necessary tax function. I'm explaining the business case for local LLMs is poor.