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Comment by spacebanana7

3 hours ago

There is a coherent argument that once LLMs reach the top of their S curve, the gap between small/medium local models and large cloud hosted ones converges.

Especially if GPU performance increases or market oversupply mean you can get good performance for a couple thousand dollars.

I’m not sure about the nature or timeframe for an S curve in LLMs but I don’t think it’s unreasonable to think about one, nor to entertain the hosting consequences of a progression on one.

I don't know the argument so I won't insist on the point, but I fail to see how it is relevant. Even if all proprietary LLMs disappeared today, efficiencies of scale alone mean the big cloud vendors can take the same open-weight LLMs you use locally, and sell inference with them for less money, and much more reliably, than you can afford yourself.