It’ll definitely switch to local. The electricity and water bills for these AI data centres are enormous, and it’s not getting any better. They’ll either cut it off due to being unsustainable regarding their profit margins, or some laws will curb them down due to wasting Earth’s resources.
OpenAI has been operating at a loss since it started, and it’s only sustained by external investments, and it’s not the only case of AI being unprofitable.
Right, so far no American company managed to make any actual profits of selling LLMs as a service, and the cost of operating the data centres is literally an order of magnitude higher than the profits they pull in. And the kicker is that if models get efficient enough to bring the costs down, then they become efficient enough to run locally. So the whole business model fundamentally doesn’t make sense. Either it’s too expensive to operate, or nobody will want to use it as a service because running your own gives you privacy and flexibility.
It’ll definitely switch to local. The electricity and water bills for these AI data centres are enormous, and it’s not getting any better. They’ll either cut it off due to being unsustainable regarding their profit margins, or some laws will curb them down due to wasting Earth’s resources. OpenAI has been operating at a loss since it started, and it’s only sustained by external investments, and it’s not the only case of AI being unprofitable.
Right, so far no American company managed to make any actual profits of selling LLMs as a service, and the cost of operating the data centres is literally an order of magnitude higher than the profits they pull in. And the kicker is that if models get efficient enough to bring the costs down, then they become efficient enough to run locally. So the whole business model fundamentally doesn’t make sense. Either it’s too expensive to operate, or nobody will want to use it as a service because running your own gives you privacy and flexibility.