The hardware requirements are substantial. If companies or individuals want to run models locally, especially at the speed you’d expect from the big name models, then everyone needs a pretty serious GPU on their work station. That or the company needs to build and maintain a server capable of running whatever loads they expect to see.
None of this is impossible of course. But you pay for the tokens one way or another. Either you pay the upfront cost of the hardware and continuing cost of the electricity to run it, or you pay with the inconvenience of running a model very slowly on lower end hardware, or you pay a subscription for someone else to worry about all that.
This is why local models are still niche. Only hobbyists nerds are willing to go through the trouble of setting up and running a local model. Most companies still are not sure if AI is actually worth it for them. So it’s much easier to pay for tokens than the giant upfront cost required to build you own infrastructure.
If the numbers the AI companies are putting up as far as infrastructure cost vs revenue are anything to go by, it probably isn’t worth it to most companies.
The hardware requirements are substantial. If companies or individuals want to run models locally, especially at the speed you’d expect from the big name models, then everyone needs a pretty serious GPU on their work station. That or the company needs to build and maintain a server capable of running whatever loads they expect to see.
None of this is impossible of course. But you pay for the tokens one way or another. Either you pay the upfront cost of the hardware and continuing cost of the electricity to run it, or you pay with the inconvenience of running a model very slowly on lower end hardware, or you pay a subscription for someone else to worry about all that.
This is why local models are still niche. Only hobbyists nerds are willing to go through the trouble of setting up and running a local model. Most companies still are not sure if AI is actually worth it for them. So it’s much easier to pay for tokens than the giant upfront cost required to build you own infrastructure.
If the numbers the AI companies are putting up as far as infrastructure cost vs revenue are anything to go by, it probably isn’t worth it to most companies.