Totally agree on the privacy sovereignty front. I suspect in the long run personal tasks will be handled by local models for this reason. I guess I’m thinking more on the scale of institutional compute. Just like every large university has their own super compute cluster I expect them to want their own AI instance (I know companies like Amazon already have such a thing) and in those instances the gap in skill really matters and these institutions are willing to pay a fair amount for the best out there.
Also I can’t speak on equivalence with frontier models 3-4 months ago because I didn’t have access to paid models back then but if that’s true and not just bench maxxing then it means the moat is widening not shrinking. Which suggests these labs are in a good position to make themselves an asset the US cannot afford to lose despite their comically costly business model.
Totally agree on the privacy sovereignty front. I suspect in the long run personal tasks will be handled by local models for this reason. I guess I’m thinking more on the scale of institutional compute. Just like every large university has their own super compute cluster I expect them to want their own AI instance (I know companies like Amazon already have such a thing) and in those instances the gap in skill really matters and these institutions are willing to pay a fair amount for the best out there.
Also I can’t speak on equivalence with frontier models 3-4 months ago because I didn’t have access to paid models back then but if that’s true and not just bench maxxing then it means the moat is widening not shrinking. Which suggests these labs are in a good position to make themselves an asset the US cannot afford to lose despite their comically costly business model.