PC's are 1000x faster than they were 20 years ago yet cloud services still makes a relatively larger share of Microsoft's revenue each year.
Your premise makes sense if the benefits of an AI model topped out at something that a person's personal computer could run. However scaling laws seem to have no limit yet (perhaps due to the general nature of intelligence itself not having a "limit"), thus the labs will still have a significant advantage due to scale and hosting models with a distinct comparative advantage to even the best local models.
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PC's are 1000x faster than they were 20 years ago yet cloud services still makes a relatively larger share of Microsoft's revenue each year.
Your premise makes sense if the benefits of an AI model topped out at something that a person's personal computer could run. However scaling laws seem to have no limit yet (perhaps due to the general nature of intelligence itself not having a "limit"), thus the labs will still have a significant advantage due to scale and hosting models with a distinct comparative advantage to even the best local models.