536 pointsby cylo8 hours ago56 comments
  • pronik4 hours ago
    They will be, and that moment is not that far off. We've got the progression in place already: first, large data centers could have performant LLMs, we are now firmly in "a bunch of servers with a couple of H100s each" territory, slowly going into "128 GB VRAM on a MacBook Pro or a Strix Halo". Within the next year, the pattern of "expensive remote LLM for planning, local slow-but-faster-than-human LLM for execution" will become the norm for companies, slowly moving to "using local LLM for everything is good enough". And then we'll have the equilibrium we already have with the "classic cloud": you either self-host or pay for flexibility and speed. The question will be: how much of the current compute capacity craze will local hosting give the kiss of death to and what that means for the market.
    • reisse2 hours ago
      > They will be, and that moment is not that far off.

      It's here, right now. I'm running quantized Qwen and Gemma on a decent, but three years old gaming rig (think RTX 3080 12GB and 32 GB RAM). Yes, it's slow, it has a small context window. But it can (given a proper harness) run through my trip photos and categorize them. It can OCR receipts and summarize spendings. It can answer simple questions, analyze code and even write code when little context is required. Probably I could get a half-decent autocomplete out of it, if I bother with VS Code integration. "128 GB VRAM on a MacBook Pro or a Strix Halo" is already a minimum viable setup for agentic coding, I think.

      > And then we'll have the equilibrium we already have with the "classic cloud": you either self-host or pay for flexibility and speed.

      Currently, it works exactly the other way. The cloud versions are orders of magnitude cheaper than self hosting, because sharing can utilize servers much more efficiently. Company can spend half a million bucks on a rig running GLM 5.1, and get data security, flexibility and lack of censorship, but oh it's so expensive compared to Anthropic per-seat plans.

      • digitaltrees24 minutes ago
        I built my own IDE and run my own model specifically to have private agentic coding. I can still access model APIs but I can be purely local if I want too. It’s amazing.
      • antidamage11 minutes ago
        This is my exact setup as well and dear lord gemma is absolutely batshit insane. I'm trying to get a self-reflection and confidence loop going now, but it does feel like it's not the local resources, it's the limits of the training. Dedicated coding or dedicated real-world task models would be a good optimisation.
      • datadrivenangelan hour ago
        In my experience once you get to ~30 gigs of ram for a model like Gemma4, the rest of the 128g of memory is simply nice to have. The speed and costs are what make it tough though, because its slower and more expensive than the same model served on a big accelerator card, and is going to be worse than a frontier model.
        • digitaltrees22 minutes ago
          I wonder if it really needs to be worse. I am playing with the idea of fine tuning a model on my exact stack and coding patterns. I suspect I could get better performance by training “taste” into a model rather than breadth.
      • winocman hour ago
        Perhaps I am the odd one out here, but a small part of me wants to see what happens when you run a proprietary SOTA model on a laptop.
        • reisse41 minutes ago
          Nothing special?

          I mean, inference engine might need to get some tweaks, to support whatever compute is available. But then, if you put a few terabytes of disk for swap, and replace RAM to bigger sticks if possible, it should work? Slowly, of course, but there is no reason it should not to.

          • reverius426 minutes ago
            The big difference will be measuring seconds per token instead of tokens per second.
        • yfw36 minutes ago
          You can if you have enough ram slots?
    • pier2542 minutes ago
      How fast do you reckon most people will be able to afford 128-256GB of RAM?
      • Schiendelman31 minutes ago
        Other than this recent spike, it's been trending cheaper continuously for decades. In a few years 128GB will be as affordable as 12GB (what flagship phones have now) is today.
        • pier2523 minutes ago
          I'm sure it will happen but I don't think it will be soon.

          10 years ago I was using 16GB in my MBP and today it's 48GB. It's just a 3x increase during mostly a bonanza period.

    • RataNova4 hours ago
      The biggest impact of local models may simply be that they prevent remote inference from becoming the only game in town
    • dakolli4 hours ago
      [flagged]
      • zozbot2344 hours ago
        No one runs SOTA models 24/7 for individual use or even for a single household or small business, whereas you can run your own hardware basically 24/7 for AI inference.

        With the new DeepSeek V4 series and its uniquely memory-light KV cache you can even extend this to parallel inference in order to hide memory bandwidth bottlenecks and increase compute intensity.

        This is perhaps not so useful on a 128GB or 96GB RAM Apple Silicon device (I've seen recent reports of DS4 runs with even one agent flow hitting serious thermal and power limits on these devices, so increasing compute intensity will probably not be helpful there) but it will become useful with 64GB devices or lower that have to stream from a slow disk, or with things like the DGX Spark or to a lesser extent Strix Halo, that greatly overprovision compute while being bottlenecked on memory bandwidth.

        • 4 hours ago
          undefined
      • NitpickLawyer3 hours ago
        API prices are most likely not subsidised. A brief look at openrouter can tell you that. There are plenty of providers that have 0 reason to subsidise that sell models at roughly the same average price. So the model works for them (or they wouldn't do it otherwise).
        • ai_fry_ur_brain2 hours ago
          They are subsidized, heavily. This is simple math, there are lots of reasons to subsidize. Please go look up the hardware requirements to run your favorite model and a given tok/ps then multiple that by 86400 (seconds in a day) then divide that by 1mm and multiple by the $ per mm tokens, then ask yourself if there's any possibility they could be profitable or even close to break even.

          You are going off vibes alone, this is easily verified, please go verify.

          What makes you think they have zero reason to subsidize, because the providers aren't a household names you assume they wouldn't operate at a loss? Whats your logic here? You make no sense.

      • CamperBob23 hours ago
        It cost 20-30k a month to run Kimi 2.6. The tokens are sold for $3 per mm.

        Not if you're OK with 4-bit quantization. More like $30K-$50K one time.

        Spring for 8 RTX6000s instead of 4, and you can use the full-precision K2.6 weights ( https://github.com/local-inference-lab/rtx6kpro/blob/master/... ).

        • reissbaker3 hours ago
          RTX 6000 Pro retails for $10k so an 8x is $80k before anything else in the computer, and long-context will have... pretty bad performance (20+ seconds of waiting before any tokens come out), but it's true it technically works.

          I don't think cloud models are going away; the hardware for good perf is expensive and higher param count models will remain smarter for a looong time. Even if the hardware cost for kind-of-usable perf fell to only $10k, cloud ones will be way faster and you'd need a lot of tokens to break even.

          • zozbot2343 hours ago
            > I don't think cloud models are going away; the hardware for good perf is expensive

            I think local AI will win in its niche by repurposing users' existing hardware, especially as cloud hardware itself gets increasingly bottlenecked in all sorts of ways and the price of cloud tokens rises. You don't have to care about "bad" performance when you've got dedicated hardware that runs your workloads 24/7. Time-critical work that also requires the latest and greatest model can stay on the cloud, but a vast amount of AI work just isn't that critical.

            • ai_fry_ur_brain2 hours ago
              "I think"

              Well your thinking is completely vibes based and not cemented in any reality I exist in.

        • zozbot2343 hours ago
          4-bit quantization is native for Kimi 2.x series.
          • CamperBob23 hours ago
            You're right, I was thinking of Qwen. K2.6 will run at UD-Q2_K_XL precision on 4x RTX6000 boards, but I have no idea if it's worthwhile.
      • nullc4 hours ago
        > two 4090s is not consumer grade

        I think that is a very narrow perspective. Enormous numbers of consumers own $50,000 cars, but a pair of $2000 GPUs is "not consumer"?

        I agree with your view that cheap tokens on SOTA are a trap-- people should use local AI or no AI.

        • ac292 hours ago
          > Enormous numbers of consumers own $50,000 cars, but a pair of $2000 GPUs is "not consumer"?

          $50k is a median priced car in the US. I'd guess >99.9% of people do not own $4000 of GPUs. I consider myself a computer person and I dont think I even own $4000 of computer hardware in total

          • zozbot2342 hours ago
            Plenty of gamers own serious GPU rigs that are reusable (at least to some extent) for local AI inference. That's almost certainly more than 0.1% of the populatiom.
          • nullc2 hours ago
            I guess I wasn't clear-- I wasn't so much making the point people do own $4000 in GPUs (though I suspect you are massively underestimating the number who do, also before the current market conditions this would have been more like $2500 in gpus...), but they certainly could per the evidence of car ownership.

            A car is super useful, so is an AI. But even if we decide cars are incomparably more useful a great many people pay much more than $4000 over the minimum viable car, and that's money that could be deployed to secure access to private, secure, and autonomous AI facilities. A few thousand dollars in computing is consumer hardware, or at least could easily be with more reason and awareness driving adoption.

            People spend a LOT of money in things less useful than local copy of qwen3.6-27b can be.

        • dakolli4 hours ago
          I would still question what usefulness there is with a local model even with 10k in GPUs. I certainly haven't seen any great uses myself from these smaller models (<500 parameters) except claims from people who are totally enamored with AI and basically anything output from an LLM impresses them like a toddler who's entertained by the sound their velcro shoes makes.
          • robot-wrangler3 hours ago
            Probably you're focused on coding agents? I bet someone could use that kind of hardware to filter snarky comments
          • nullc3 hours ago
            Here is an example-- I'm running hermes + qwen3.6-27b on a workstation GPU (an older RTX A6000 which gets 55tok/s, though people run this model on more limited hardware).

            A friend an I had previously worked on an entropy extraction scheme and he recently got around to making a writeup about our work: https://wuille.net/posts/binomial-randomness-extractors/

            I instructed the agent to read the URL, implement the technique in C++ for 32-bit registers, then make a SIMD version that interleaves several extractors in parallel for better performance. It implemented it (not hard since there was an implementation there that it read), then wrote more extensive tests. Then it vectorized it. It got confused a few times during debugging because the algorithm uses some number theory tricks so that overflows of intermediate products don't matter and it was obviously trained a lot on ordinary code were such overflows are usually fatal. I instructed it to comment the code explaining why the overflows are fine and had it continue which mostly solved its confusion.

            It successfully got the initial 12MB/s scalar implementation to about 48MB/s. Then I told it to keep optimizing until it reaches 100MB/s. I came back the next day and it had stopped after 6 hours when it achieved just over 100MB/s. Reading what it did: it went off looking at disassembly, figured out what hardware it was running on, and reading microarch timing tables online and made some better decisions, tried a lot of things that didn't work, etc. (And of course, the implementation is correct).

            I'm pretty skeptical about AI and borderline hateful of many people who (ab)use it and are deluded by it-- but I think this experience shows that a small local model can be objectively useful.

            (oh and this experience was also while I only had the model running at 19tok/s)

            Running the model in a loop where it can get feedback from actually testing stuff allows you to make progress in spite of making many mistakes.

            I could have done this work myself but I didn't have to and I certainly spent less time checking in and prodding it than it would have taken me to do it. In my case I wondered how much faster parallel extractors using SIMD might be-- an idle curiosity that would have gone unanswered if not for the AI.

            • ai_fry_ur_brain2 hours ago
              This is maybe the first time Ive seen someone claim to do something useful with such a small model.

              Congrats, but you're in the 0.0001% thats not just frying their brains, fapping to their local models or doing various magic tricks like a toddler entertained by playing with velcro.

              At the end of the day you lost an opportunity to improve yourself and excercise your brain, maybe the opportunity cost is worth it idk, but Im going to keep taking things slow.

              Handmade swiss watches > mass manufactured immitations. Handmade clothes > walmart clothes.

              • nullc2 hours ago
                This is a change that's been happening gradually over time-- I don't think I could have done this on a local model that could run on a consumer class gpu a couple months ago.

                There are plenty of other uses that people have been making for a long time-- e.g. I know someone who uses a fine tuned local model to sort their incoming email and scan their outgoing messages for accidental privacy leaks.

                I don't agree with your assessment on an opportunity lost-- I got my reps in on the original work, the AI gave an incremental step forward which made the whole exercise somewhat more valuable to me with minimal additional cost. I think this improves the cost vs benefit in a way that makes me more likely to try other pointless activities, knowing that when I run out of gas I can toss it to AI to try some variations.

                Sometimes you're also 27 steps deep on a nested subproblem and you're really just trying to solve sometime. Even in finr craftsmanship not every step needs to be about maximum craftsmanship. :) Sometimes it's just good to get something done.

                I think this is much like any other tool. One can carve furniture using only hand tools, but the benefits of a router are hard to dispute. Both approaches exist in the world and sometimes both are used in concert.

                As far as people frying their brains with AI -- you don't need local models for that, plenty of people are driving themselves into deep personally and socially destructive delusion just using the chat interfaces.

                • ai_fry_ur_brain2 hours ago
                  I do think post training smaller open source models for very narrow tasks is largely overlooked and there'll be lots of value there if one puts in the effort. However, in a lot of cases we're just compeleting a circle back to deterministic behavior at 1000x the memory/compute requirements just to avoid writing regex.

                  I agree with you, there's a way to use them responsibly like your router anology, I just think most aren't doing this correctly and its a slippery slope. I'll contend that you probably have used them responsibly in your example.

      • hparadiz4 hours ago
        Posts like this are so funny to me. I'm staring at a mountain of old hardware right now that cost about $20k ten years ago. I have to pay someone now to come haul it away. What makes you think the current new hardware won't end up with the same fate.

        > Just write your own fkin code people

        Bro is nostalgic for googling random stack overflow threads for 10 days to figure out a bug the agent fixes in an hour.

        • cindyllm4 hours ago
          [dead]
        • dakolli4 hours ago
          I'm just saying that agent that can fix your bugs actually cost $100-150 an hour to run and you're getting it essentially for $200.00 a month.

          The cost of cloud compute actually hasn't gone down for old hardware all that much, it still costs $500.00 a year rent 4 core i7700k that's 10 years old. Don't expect much more valuable hardware, like modern GPUs to deflate in price all that quickly.

          There's 3 fabs in the world that make ddr7 and they aren't going to be selling their stock to consumers going forward, it will be purchased by datacenters almost entirely and stay in them until EOL.

          Your brain is going to atrophy (this is proven), they'll raise the price to something thats closer to break even and you'll be forced to pay it because you no longer have those muscles.

          • hparadiz3 hours ago
            The architectural problems I deal with day in day out leave no room for atrophy. This is just cope.
  • antidamage15 minutes ago
    The roadblock to this is you seem to have to build it yourself. I've noted that none of the current cloud models are very good at building a replacement for themselves, and there's significant work that needs to be done to make a local LLM reliable in any way. I haven't found a single standalone package that makes setting them up easy. Sure, I can run Hermes Agent and a model, but getting the self-reflection loop in and all of the other stuff the need to actually be good? I'm still at it, trying to get anything to work reliably and factually.
    • DonsDiscountGasa minute ago
      Could be an opportunity for a business? Except nobody ever wants to pay for software
  • TheJCDenton5 hours ago
    For the mainstream audience, the sentiment around local ai today is the same that they had around open source a few decades ago. For a few products, some paid solutions were so much more advanced that open source were very often completely overlooked. Why bother ? And the like. Then we had captive SaaS and other plateforms and now it's obviously wrong for most of us.

    The dependency we have with anthropic and openai for coding for instance is insane. Most accept it because either they don't care, or they just hope chinese will never stop open weights. The business model of open weights is very new, include some power play between countries and labs, and move an absurd amount of money without any concrete oversight from most people.

    It's a very dangerous gamble. Today incredible value is available for nearly everyone. But it may stop without any warning, for reason outside our control.

    • apublicfrog3 hours ago
      > It's a very dangerous gamble. Today incredible value is available for nearly everyone. But it may stop without any warning, for reason outside our control.

      What stops you from running the best open weighted LLMs currently available on consumer grade hardware for the rest of time? They're good enough for 95% of use cases, and they don't have a used by date. From what I can see, the "danger" is not having the next tier that comes out, but the impact of that is very low.

      • giobox3 hours ago
        > they don't have a used by date

        For quite a lot of use cases, the current systems arguably do get worse over time if not continually updated. The knowledge cutoff date will start to hurt more and more as the weights age in a hypothetical scenario where you are stuck with them forever.

        Coding, one of the most popular usescases today, would not be great if it say only understood java to a version from years ago etc.

        https://en.wikipedia.org/wiki/Knowledge_cutoff

        • throwyawayyyy3 hours ago
          One solution is not to advance anything of course. I'm not even joking, is there going to be a successor to React? I suspect not, with the vast amount of training data for React now, it's going to look silly to move to something else with less support. What is the last new popular programming language, rust? Will there be another one? I suspect not. Same reasoning. The irony of all this AI acceleration talk is it'll work best if we don't accelerate the underlying tech at all.
          • digitaltrees3 minutes ago
            Yes. I am seeing a big push to use vanilla js for single file html apps that are easy to build, deploy and distribute because they have no build step. I could see component libraries emerging that make it easier build from chat interfaces with less ceremony
          • WarmWashan hour ago
            There probably won't be new stuff so much as trends in how stuff is done, and updates around optimizing those trends.
          • jvm___an hour ago
            Will programming languages evolve into less human oriented written code and more just calls to a trusted AI.

            Or will human readable code be less and less of a thing as AI learns it's own, more terse language to talk to other AI's.

          • hadlockan hour ago
            Name/post content combo on point
          • Spooky23an hour ago
            Alot of the language work is scratching the itch of engineers and developers. I think you’re correct and react is the new COBOL.
          • apsurdan hour ago
            Humans are notoriously bad at predicting the future. Toward that end, your prediction is laughable. React is the end all be all of UI… lol
            • melagonster40 minutes ago
              Programmers won't be allow to exist in future. Vibe coding is the final resolution people can apply.
        • rrvsh3 hours ago
          Nobody is unaware of the knowledge cutoff, and sharing the Wikipedia article is not helping anyone. Your point is easily rebutted by taking whatever open weights/source model has an outdated cutoff and training or fine tuning it on more data, which is again always going to be viable given a modicum of compute
        • tcp_handshaker3 hours ago
          You could learn how to code...a whole generation did it before...
        • mrtesthahan hour ago
          >Coding, one of the most popular uses cases today, would not be great if it say only understood java to a version from years ago etc.

          This LLM trained only and entirely on pre-1930s texts was able to code Python programs when given only a short example:

          https://talkie-lm.com/introducing-talkie

        • nullc2 hours ago
          Small models are more useful for "doing stuff" than "knowing stuff" to begin with. Add in an agentic harness and a small model can happily read more current information on demand (including from e.g. a local wikipedia snapshot).
      • turtlebits3 hours ago
        FOMO. A new model comes out weekly and the HN crowd debates over the minutia of changes.

        Pockets are too deep, it will only change once everyone is out of money.

      • nightski3 hours ago
        Hardware. Frontier labs are driving up demand so much that it's priced significantly above cost making it far less affordable. Just look at Nvidia's profit margins.
      • lxgr3 hours ago
        They’re really not good enough, unless you consider 64 GB of memory or more consumer grade.
        • steve_adams_863 hours ago
          I’m pretty happy with what a 32GB Mac Studio can do for a lot of tasks. They’re the things I’d throw a model like Haiku at, but still genuinely useful. We don’t have an answer to frontier models in the consumer range yet, but we’re not totally trapped.

          Side note though, it’s the speed that bothers me more than the reasoning. Qwen 3.5 is awesome, but my Claude subscription can tear through similar workloads an order of magnitude faster than my local LLM can when using Haiku. That’ll matter a lot to some people.

          • datadrivenangelan hour ago
            Yeah this is the real killer. slower and more expensive is tough.
      • suika3 hours ago
        The use cases in the future will be nothing like the use cases from today.
      • avazhian hour ago
        > What stops you from running the best open weighted LLMs currently available on consumer grade hardware for the rest of time?

        Uh… the hardware requirements? And stop acting like some dog shit 8B model the average Joe can run on a laptop is even close to being comparable to what Claude or even Codex can currently do.

        I have pretty good hardware and I’ve tinkered with the best sub-150B models you can use and they are awful compared to Anthropic/OAI/Grok.

        • apsurd39 minutes ago
          What if the harness and loops get sufficiently better though? CC is using haiku for code-base gripping and such, you don't see a local commodity model being "good enough" for the 80% case when matched with better harnesses and tool calls?

          honest question, i'm very interested in this, but too casual as of now to know any better.

      • ai_fry_ur_brain2 hours ago
        95% of usecases. What are you smoking.
        • an hour ago
          undefined
    • oytis5 hours ago
      What is the business model of open weight AI? I don't think there is any. At best it can serve as an advertisement for the more advanced models you sell.

      The huge difference to open source is that you can't just train an LLM with free time and motivation. You need lots of data and a lot of compute.

      I sure want to be wrong on that, I definitely like the open-weight version of the future more

      • try-working3 hours ago
        Open sourcing models is a marketing strategy. Chinese labs and small international labs have no awareness or distribution, so unless they become a hot topic for a while, nobody is going to bother trying out their models. Open source gets them that, and is essentially a tax on newcomers. When you start out you simply have no other option but to open source your models.

        So, the business model of open models is the same as closed models: Sell inference. Open source is marketing for that inference.

        https://try.works/#why-chinese-ai-labs-went-open-and-will-re...

        • pabs321 minutes ago
          None of these models are open source, they are just public weights, with licensing that sometimes but usually doesn't meet the Open Source Definition.

          The Open Source AI Definition (OSAID) is quite ridiculous, I prefer the Debian ML policy for defining freedoms around AI.

          https://salsa.debian.org/deeplearning-team/ml-policy/

        • kranke1552 hours ago
          China’s long term goal might just be to own the chip layer alongside everything else, and outproduce the US in data centers.

          Frontier US labs could still have an advantage for a long time, but many use cases would start gravitating towards Chinese models if they 10x the data centers and provide similar quality inference for a third of the cost.

      • wood_spirit4 hours ago
        Meta released Llama just when OpenAI was so hot and its valuation was going through the roof. Speculating, but Meta probably thought the model not competitive enough to keep as a secret weapon but well good enough to commercially damage OpenAI who were a sudden competitor for most-valued-company?

        In the same way you can imagine the Chinese government pushing the release of deepseek etc to make sure no one thinks the US has “won” and to keep everyone aware that a foreign model might leapfrog in the short term future etc.

        At some point though if OpenAI/Antropic/Google plateau or go bust then the open source sponsorship becomes less likely, as making it open source was a weapon not a principle.

        • 2ndorderthought4 hours ago
          I disagree. I think deepseek, qwen, and kimi earn a lot of trust open sourcing their models. While still profiting.

          Effectively they are saying "yea don't crowd our data centers with small queries, go ahead and send your frontier questions to our frontier models. Oh btw those us models? You can run something about as good for free from us if you want hah." It's a power and marketing move. It's also insanely smart to keep up with it to remain sustainable as a brand. Especially given how small their investments into this are.

          Look at anthropics growing pains. Deepseek has other hosts spreading their brand for free while they grow. Brilliant honestly. In my opinion it makes anthropic and openai look clueless on a lot of levels.

          China is playing a different game here. To them this is commoditizing their compliment and building good will. The Chinese economy doesn't teter on the brink of collapse to deliver frontier grade LLMs. Nope, Alibaba just made qwen because it needs it. It needs efficient models. Similarly, in China they manufacture and automate so much more than the US ever could. LLMs to them are a topping not the whole meal like they are in the us.

          • WarmWashan hour ago
            The Chinese labs don't have to make money or be profitable. They are funded by the state to achieve the state's goals, and the global praise of their open models just serves as Chinese soft power.

            They're state companies, not some kind of ethical VC charity fund project.

            • 2ndorderthought32 minutes ago
              The fun part is, they are making money and have way less to pay off despite 100s of billions in donations than the US companies do.
            • Spooky23an hour ago
              Is it so different?

              If the US’s fascist experiment continues past the current president, we’ll absolutely be nationalizing frontier companies or exerting equivalent control.

              • treisan hour ago
                Yes, China is very different from the US.
          • HDBaseT2 hours ago
            You can still make money on open weight models.

            The compute required to run these models is still very far out of reach for the average consumer, yet known enthusiast, therefore they still sell inference, whilst also getting consumer goodwill for providing open weights.

            • datadrivenangelan hour ago
              And the efficiency! Big accelerator cards are ~100x the throughput per watt in terms of raw processing power.
          • try-working3 hours ago
            Correct. Open source is a PR and marketing strategy for new labs, regardless of origin.

            https://try.works/#why-chinese-ai-labs-went-open-and-will-re...

          • mystraline3 hours ago
            Thats because the USA has really nothing big to export. Yay, designs.

            China? Im getting ready to watch the URKL (universal robot knockout league) go on. The USA is dicking around with failed robot dogs.

            The USA has been a failed country, coasting on massive inertia. But the tech avenues from a article I cant find showed the USA 8/64 areas excelling. China was 56/64 areas excelling.

            • 2ndorderthought2 hours ago
              I believe it. The us intentionally lacks accountability to prop up the already wealthy in almost all of its ventures. Which socializes losses and capitalizes gains. It's an economic model that guarantees deterioration and stagnation.

              Dodging politics, the power structures in us industry need serious revamping.

            • WarmWashan hour ago
              China is an advanced 2nd world country with pockets of first world.

              Smart people in China design fast manufacturing lines for $25k/yr.

              Smart people in the US design bond hedging strategies or ad-pixel trackers for $250k/yr.

              China is in the stage the US was in 60 years ago, and eventually those high paying, high impact jobs will suck the intelligence out of all the "blue collar" work. Just like it did in the US.

            • mrleinad2 hours ago
              China is going to be the next Germany: a loser in the new world without globalization
            • sillysaurusx2 hours ago
              If this is true, then why are most of the companies that change the world founded in the US?
      • js84 hours ago
        What is the business model of Wikipedia? I don't think there is any.

        Not everything good in our society needs to have a "business model". People still work on it. It's FINE.

        • avidphantasm4 hours ago
          Ultimately, information is a public good: it is non-excludable (you can’t stop people from using it) and it is non-rival (we can all use it at the same time). Public goods are often very useful, and because they are non-excludable and non-rival, ultimately can’t have a market-based business model. I would class open-weights AI models as public goods, and would support government expenditure to produce them.
        • sroussey3 hours ago
          > What is the business model of Wikipedia?

          Donations. Have you donated lately?

          Wikipedia is cheap compared to creating and training models.

          I don’t think donations will suffice at all.

          As an example, we had millions of web developers download and install Firebug before browsers shipped their own dev tools. Donations over the course of multiple years would have paid my salary for a month if I were not a volunteer.

          But from the “it’s fine” point of view, models will be baked into your OS.

          Then later models will be embedded into hardware. Likely only OS makers models.

        • phainopepla24 hours ago
          Training AI models is capital intensive, though. Unless there's some sort of mega-crowdfunding effort for open weight model training there needs to be a way to recoup that money on the other end. Either that or state sponsorship I guess
      • PAndreew5 hours ago
        Perhaps you can create a compelling UX around it and sell it as a subscription. "Normies" will not be able/willing to build it. You can then patch the model/ship new features around it as it evolves. For example I have built an ambient todo list / health data extractor using Gemma 4 2EB and Whisper. Nothing to brag about but it does fairly decent job even in foreign languages.
      • karussell5 hours ago
        > What is the business model of open weight AI?

        This is what I do not understand as well and advertising the knowledge and more advanced model is also the only thing that comes to my mind.

        Since a month I am using gemma4 locally successfully on a MBP M2 for many search queries (wikipedia style questions) and it is really good, fast enough (30-40t/s) and feels nice as it keeps these queries private. But I don't understand why Google does this and so I think "we" need to find a better solution where the entire pipeline is open and the compute somehow crowdfunded. Because there will be a time when these local models will get more closed like Android is closing down. One restriction they might enforce in the future could be that they cripple the models down for "sensitive" topics like cybersecurity or health topics. Or the government could even feel the need to force them to do so.

        • 2ndorderthought5 hours ago
          Why would you want to try to support all users simple queries on your ai data center if they could run it on their own computer?

          It builds good will also. it also shows research prowess.

          For China it's different. They need to show Americans who don't trust them at all because of propaganda that they have no tricks up their sleeve. It also doesn't hurt when Chinese companies drop models for free people can run at home that are about as good as sonnet. Serious mic drop.

          • TheJCDenton4 hours ago
            Very good point on using local ai to avoid data centers costs.

            Running AI models on local hardware was exploratory at first, and if it's so easy today it's thanks to open source. It's a little bit coincidental that we have this today, and that mainstream hardware have this capability. The fact that a phone can run very small models is exploratory or some kind of marketing opportunity at best.

            Why would hardware company ships cards with more AI capabilites (like more VRAM) in the foreseable future ? On what ground does the marketing for on device AI will keep generating interest ? For something as important, it's very uncertain. But above all, it should not depends on these brittle justifications.

            Showing good will in distribution and research prowess today is positive communication, but it can be exactly the oppositite if/when an attack using those small models will reach a high value target.

            For China the cultural difference is so huge, it's difficult to say. I would think they first and foremost need to show to evryone inside and outside of China that they match american models. Second, i would say that when americans prefer few very powerfull companies on the get go because they can leverage a lot of capital rapidly to industrialize, China will prefer leveraging a lot of smaller companies exploring a lot of things simultanously (so doing a lot of research), THEN creating legislation to let only the best (or a few) to survive effectively. In the end it's the same result (monopoly or oligopoly), but China may have a stronger core (research) and America may have stronger productive capital, that may be proved obsolete... In the long run, in either side it's a gamble, again.

            • codebjean hour ago
              I'd expect unified memory architectures (Apple M-series, AMD Ryzen AI series, etc) to be the future of local inference, not GPU cards.
              • 2ndorderthought33 minutes ago
                Time will tell. Depends on small model architecture trends and hardware availability. I wouldn't be surprised if something came slightly out of left field. Considering Taiwan is trapped into producing the same chips for the next 2 years, I wouldn't be surprised if a new player emerged.
            • 2ndorderthought3 hours ago
              They have already shown that their models match or excel over American ones in different cases. For cheaper too.

              I disagree on the second point. I think most Americans don't prefer fewer competition, that's a bit antithetical to the free market.

              I doubt the Chinese government cares as much about controlling a few companies as you think they do.

              China has a few things going for it beyond research. They are mission driven, they actually have needs for this technology, their needs will forward their entire economy as they are the world's largest manufacturers. They are also huge exporters and have buckets of customer support for various languages.

              China also has considerably stronger infrastructure for electricity, etc. even with an nividia embargo they are doing more than showing up.

              I don't think it's a matter of who "wins". There is no winning. I think China stands to gain far more from LLMs than the US does, and they have proven they don't need the us to do it, even with he us trying to sabotage it's every move into the space. The game is already more or less over in my mind.

              If anything I see LLMs as having a huge market in China, and now the US can't even sell it to them.

              All I care about is, if I have to use this technology, let me run it locally to avoid the surveillance capitalism aspect. That seems to be the real reason the us has propped up it economy in anticipation for this technology. Yet it doesn't long term benefit the us nor me.

          • karussell5 hours ago
            Indeed cost can be another factor. Maybe also the main reason why Chrome added an offline model.
            • 2ndorderthought4 hours ago
              That and it's lucrative for Android/chrome to have a text summarizer model embedded on your phone probably for government contracts and data exfil but we won't go through there.
        • 5 hours ago
          undefined
      • majormajor4 hours ago
        > What is the business model of open weight AI? I don't think there is any. At best it can serve as an advertisement for the more advanced models you sell.

        I don't think local will necessarily be open-weight. And then it's not that different from personal computing: you're giving up the big lucrative corporate mainframe, thin-client model for "sell copies to a ton of individuals."

        So it'd be someone else (an Apple, or the next-year equivalent of 1976 Apple) who'd start eating into that. There are a few on-device things today, but not for much heavy lifting. At first it's a toy, could maybe become more realized in a still-toy-like basis like a fully-local Alexa; in the future it grows until it eats 80-90% of the OpenAI/Anthropic use cases.

        Incumbents would always rather you pay a subscription or per-use forever, but if the market looks big enough, someone will try to disrupt it.

        • treis2 hours ago
          Compute has gone back and forth from mainframe/thin client to fat client a few times already. LLMs will probably follow at some point but I think it's going to take a long time.

          The cost to transmit text is basically free and instantaneous. The rent (i.e. a GPU in a data center) vs buy is going to favor rent until buy is a trivial expense. Like 50-100 range.

          Even then a LLM that just works is easier than dealing with your own

          • zozbot2342 hours ago
            Except that buy is a trivial expense because the hardware has been bought already. You've got a whole lot of iGPU and dGPU silicon that's currently sitting idle as part of consumer devices and could be working on local AI inference under the end user's control.
      • worldsayshi5 hours ago
        It should be feasible to crowd fund training runs right?
        • dmd5 hours ago
          A training run costs somewhere in the neighborhood of a billion dollars. That’s a thousand millions.

          How many crowdfunded projects do you know that have raised even one percent of that? Who’s going to be in charge of collecting that scale of money? Perhaps some sort of company formed for the benefit of humanity, which will promise to be a non-profit? Some sort of “Open” AI?

          Oh, wait.

          • derektank20 minutes ago
            It’s well within the capabilities of governments in developed countries. If Mistral did not already exist, I would definitely expect the French government to invest in a national LLM, if only because of how defensive they are of the French language.
          • iugtmkbdfil8344 hours ago
            << That’s a thousand millions.

            I can't say that you are lying and you are not exactly exaggerating either. It is true that a new SOTA model -- from literal scratch -- it would be expensive.

            But, and it is not a small but, is the starting point really zero?

      • sumeno3 hours ago
        If a local model hits critical mass the business model is to use it to shape opinions in a way that is advantageous for the company/owners.

        Much like the current Twitter model, being able to put your thumb on the scale of "truth". Bake a stronger bias towards their preferred narrative directly into the model. Could be as "benign" as training it to prefer Azure over AWS. Could be much worse.

      • dleslie4 hours ago
        This is where government funding can play a role.

        Sometimes there are things where the public good is best served with public expenditure.

        • CamperBob23 hours ago
          "Government funding" these days would mean that Trump pays Elon Musk (or more likely vice versa) to make Grok 4.20 the only legal LLM for use by Americans.
          • dleslie3 hours ago
            Outside of the USA it would not look like a wealth transfer to an oligarch.

            Not every country is in a crypto-libertarian race to hoard power and wealth.

            • CamperBob2an hour ago
              Not every country is in a crypto-libertarian race to hoard power and wealth.

              Meanwhile, in the EU, the model would be collectively financed, trained by a competent, neutral agency... and then completely lobotomized in the name of "the children," "safety," "IP rights," "correct speech," dozens of individual countries' legal and regulatory requirements, and any number of additional vocal, noncontributing NGOs.

              So no one would get rich off of the public model, but no one would get much of anything else out of it, either.

              As another reply suggests, there's a reason why things happen in the USA first. Even when they don't, the prime movers move here as soon as they can. Or at least they used to.

      • fragmede4 hours ago
        The business model is the total lack of attention to Qwen and Kimi that would happen if their models weren't downloadable. Before releasing the weights, there was basically zero attention paid in the western hemisphere to them, for whatever reason. By releasing the weights, they're relevant in the western world. The business model is to get people in the West to pay to use their platform hosting their AI, that otherwise would never have heard of them. As you said, advertising/marketing, essentially.
        • codebjean hour ago
          Baidu have a lot of services I've never heard of, that are highly successful in China. The lack of interest in expanding into Western audiences doesn't seem to matter there - what's different about inference?
    • beloch7 minutes ago
      Keep the Silicon Valley pattern in mind:

      1. Innovate, create, and offer it all at sweetheart prices to the public while you rack up debt.

      2. Shovel in more money and either buy out or outlast the competition. Become dominant. Lock in your users any which way you can.

      3. Enshittify and cash in.

      The deals Anthropic, OpenAI, etc. offer won't stay this good much longer. Don't let them lock you in. Failing that, you should budget more for the same service. You're going to need it. Having an open alternative running on your own hardware offers non-negligible peace of mind.

    • digitaltrees30 minutes ago
      Exactly this. The assumption that your access will last is very risky. Or that Chinese companies will keep trying to erode the economic viability of American models by open sourcing the reversed engineered models for ever is naive.
    • ios-contractor2 hours ago
      I don't think it should be local vs cloud AI. I think local AI should be treated as a separate product. local ai should do things that really don't need cloud AI, then cloud AI should be used as a fallback. That would reduce a lot of costs
    • slicktux4 hours ago
      I’m just waiting for the US Government to implement their own local AI. Which will eventually lead to them open sourcing it because it’s tax payer funded and being that the NSA has decades worth of internet data they can train on; open weights would be just as good as any companies…
    • aabhay5 hours ago
      Disagree with this. When cost becomes an important factor or the free but worse option becomes compelling and accessible (i.e. on device agent via apple style UX), there has been significant user behavior towards local. Think about stuff like removing backgrounds from photos, OCR on PDFs, who uses paid services for casual usage of these things?
    • furyofantares3 hours ago
      What's the gamble here exactly? What agency do we have in it right now?
    • iLoveOncall4 hours ago
      The mainstream audience does not have the faintest idea that "local AI" is even a thing.
      • CamperBob23 hours ago
        Just as their counterparts in 1975 had no idea that "personal computers" were even a thing.

        Read through a 1970s-era issue of Popular Electronics or Byte, and then spend some time surfing /r/LocalLlama. You'll get a sense of real-time deja vu, like you're watching history unfold again.

    • irishcoffee3 hours ago
      I own 2 5070TI cards in a rig I would gladly donate time to for a distributed training model effort. The kicker is the training data. I would want to gate the data to anything before 2022. I don’t know how to coordinate that, but I would really like to be involved in something like this. SETI, for LLMs.
      • AlexCoventry2 hours ago
        Bandwidth is the killer, in distributed LLM training.
        • irishcoffee2 hours ago
          What’s the rush?
          • codebje32 minutes ago
            It depends on the purpose for the model. AFAIK LLMs aren't particularly capable at researching answers, relying more on having 'truth' baked in to their weights, so if it takes 12 months to train up a crowd-trained LLM it'll be 12 months behind the times.

            How serious a risk is poisoned weights?

            Can we leverage the cryptobros into using LLM training as a proof of work?

    • michaelje3 hours ago
      [dead]
    • RataNova4 hours ago
      [dead]
  • Guillaume864 hours ago
    I think we should separate the private AI discussion from the local AI discussion. The pragmatic choice to run big LLMs is one/several big servers online, but that doesn't mean private companies should be the only ones to run them.

    A self hosted inference solution that offer good tenant isolation guarantees (ideally zero trust) and is easy enough to deploy and maintain (think Plex for AI) would be my choice for privacy. Now to be honest I have done zero research about this and have zero idea how feasible that is, maybe it already exists and there's some discord servers I should join?

    Edit: I don't need to mention it here but what's incredible is that open models are in the ballpark of the best commercial models so supposedly, the hardest part by far is already solved.

    • FrasiertheLion2 hours ago
      Another option is verifiably private inference with open source models running inside secure enclaves on the cloud (using NVIDIA confidential computing), and the enclave code is open source and verified via remote attestation upon connection, cryptographically proving that the inference provider cannot see any data. Tinfoil: https://tinfoil.sh/ is a good example of this (disclaimer: i'm the cofounder). You can read more about how this works here: https://docs.tinfoil.sh/verification/verification-in-tinfoil

      >that open models are in the ballpark of the best commercial models

      This is basically true for certain tasks. As an example, chat interfaces are not well poised to take advantage of higher model intelligence than what the best open source models already provide. But coding harnesses still benefit from greater model intelligence and even more so, the reinforcement learning that tightly interlinks the provider's coding harness (claude-code, codex) with the model's tool calling interfaces is another reason for discrepancy in effectiveness even when controlled for model intelligence. The opencode founder (open source coding harness that supports different model providers) was recently complaining about the challenges making the harness work well with different providers: https://x.com/thdxr/status/2053290393727324313

  • wrxd4 hours ago
    The example in the post confirms my theory that for local models to succeed they need to be "good enough", not big enough that they can compete with frontier models.

    They need to be able to do a small task well and they need to be able to run reasonably on consumer-class devices. Even better if they can run on mobile phones.

    In my experiments with local LLMs I noticed that while increasing the size of the model is nice the real thing that turns a barely useless model into something useful is the ability to use tools. Giving my models the ability to search the web and fetch web pages did way more to solve hallucinations than getting a bigger model. And it doesn't have a training cutoff. Sure, the bigger model is probably better at using tools but I often find the smaller models to be good enough.

  • revolvingthrow5 hours ago
    A local Answer Machine is the dream, especially when the internet is decaying and generally on its last legs, but the hardware requirements seem like a huge mountain to climb. Things are progressing tremendously - deepseek v4 flash is very good for what it is - but even that goes beyond any reasonable local setup, which imo is 128 GB ram + 16 GB vram. 4 ram slots on a consumer board craters ram speed, 256 gb macs are too expensive, and even then the inference is ungodly slow.

    On the other hand… v4 flash model is actual magic compared to what was available 2 years ago. If the rate of improvement stays as is, we’ll get a similar performance in a ~120B model in a year, which is viable (if expensive) for everyman hardware. Possibly you’ll be able to run its equivalent on a ~$1200 laptop by 2028, which for me-in-2020 would sound straight out of a scifi movie. A good harness that lets the model fetch data from other sources like a local wikipedia copy from kiwix could do a lot for factual knowledge, too; there’s only so much you can encode in the model itself, but even a cheapish (pre-curent prices) 2TB drive can hold an immense amount of LLM-accessible data.

    Big caveat: I don’t see local models for programming or generally demanding agentic tasks being worth it anytime soon. You likely want bleeding edge models for it, and speed is far more important. Chat at 20tok/s is fine; working on even a small codebase at 20tok/s, especially on a noticeably weaker model, is just a waste of time. Maybe it’s a PEBKAC but I have no idea how people make any meaningful use out of qwen 3.6.

    • zozbot2344 hours ago
      > and even then the inference is ungodly slow.

      This is the wrong way of putting it. Local inference with SOTA models is all about slowing down compute for the sake of fitting on bespoke repurposed hardware. You don't need to go fast if you have the whole machine to yourself 24/7. Cloud AI vendors can't match that kind of economics.

  • scriptsmith4 hours ago
    I've got some demos of what the new Prompt API in Chrome that uses a local model can do: https://adsm.dev/posts/prompt-api/#what-could-you-build-with...

    As OP says, it shines in constrained environments where the model is transforming user-owned data. Definitely less useful for anything more open-ended.

    • 2ndorderthought4 hours ago
      Yea I do not recommend treating chromes prompt API as a good example of local LLMs. It's fine and stuff but it's really weak. 8b models from a year ago are better in some ways. And a lot of the recent model drops are meaningfully better.
      • scriptsmith4 hours ago
        It's based on a Gemma 3n model, and yeah it's not the best. But if you have a use case that needs constrained JSON output for example, it's pretty neat.

        Maybe it would do better with the new Gemma 4 models, which the Chrome devs have been hinting at moving to. And why the API doesn't let you introspect / pick the model, I'm still not sure.

    • robot-wrangler2 hours ago
      > I've got some demos of what the new Prompt API can do: > Use surrounding context to rewrite your ad copy:

      Yup, that's the plan. No local model, no webpage; more, better and cheaper adtech extortion/surveillance for vendors while everyone else pays for the juice and hardware degradation.

    • dakolli4 hours ago
      So you're running an llm to do data transformation that deterministic processes would be much better suited for and running 1,000 watt power supply to do so. Wild.
  • robot-wrangler3 hours ago
    Entrenched interests are going to do everything to stop local, but there's at least a few technical reasons to believe small and specialized models could be the norm eventually. If that does happen, local will follow.

    TFA is focused on whether big models are necessary for what users want. There's some evidence they may never actually be reliable enough unless a) mechanistic interpretation matures far enough or b) our multi-agent systems all become multi-model.

    For (a), advancement in MI might fix problems with big models, but would also mean we can maybe get unified representations, and just slice and dice the useful stuff out of huge models, getting only what we need without the junk. Ability to isolate problems won't really come without bringing the ability to isolate functional subsystems. Only want logic? Only vision? Just cut it out of the big monster and enjoy reduced costs and surface area for problems.

    For (b), just look at stuff like the evil vector, or the category of hallucinations specific to tool-use. Without a complete solution for helpful/honest/harmless alignment, it seems likely that creativity and rigor (and many other things) are fundamentally at odds. If you start to need many models for everything anyway, why do we need the huge expensive do-everything ones? So specialization also becomes a pressure to shrink everything towards minimal reliable experts

  • timeattack5 hours ago
    My problem with LLMs (apart from philosophical aspects and economical impact) is that it would be unlikely for any of us to be able to train something functional locally (toy-like LLMs -- sure, but something really useful -- no). Apart from that it requires immense computing power, it also requires a dataset which is for the most part is obtained illegally.
    • kibwen5 hours ago
      This seems overly pessimistic.

      I may personally be of modest intelligence, but to acquire the intelligence that I do have, I did not need to train on every book ever written, every Wikipedia article ever written, every blog post ever written, every reference manual ever written, every line of code ever written, and so on. In fact, I didn't train on even 1% of those materials, or even 0.00000000001% of those. The texts themselves were demonstrably not a prerequisite for intelligence.

      At minimum, given that it only took me about 20 years of casual observation of my surroundings to approximate intelligence, this is proof positive that the only "dataset" you need is a bunch of sensors and the world around you.

      And yes, of course, the human brain does not start from zero; it had a few million years of evolution to produce a fertile plot for intelligence to take root. But that fundamental architecture is fairly generic, and does not at all seem predicated on any sort of specific training set. You could feasibly evolve it artificially.

      • krupan4 hours ago
        What does this even have to do with the parent? Your capabilities have nothing to do with LLM capabilities. The two work in completely different ways. The reason LLMs work is because they are huge and have been trained on vast amounts of data, full stop. Sure, there's potential someday to get something useful using less data, but we aren't there.
        • avadodin3 hours ago
          You are right on the limitations of the architecture but I wouldn't call LLMs huge. Flagship models maybe but that's just because they don't scale very well.

          A universal translator with image and voice recognition and a decent breadth of encyclopedic knowledge in only a small fraction of an English Wikipedia dump(6GB/20+GB) is not "huge".

          It is probably closer to the theoretical limit than anyone could have expected.

      • _heimdall5 hours ago
        You're also embodied and experiencing the world around you with more senses than only the ability to read text.
        • rogerrogerr4 hours ago
          > the only "dataset" you need is a bunch of sensors and the world around you.
    • dlcarrier5 hours ago
      Not the whole thing, at least with current technology, but LoRAs are really good at fine tuning, and can be generated in a few hours on high-end gaming computers, so as long as the base model is in your language, you likely have enough spate computing power, in whatever electronics you own, to train a few LoRAs a month.

      In the future, when regular home computers have the capabilities of modern servers, we'll be able to train the entire LLM at home.

    • krupan4 hours ago
      And this is important because even though you are running a model locally, it's still a proprietary model. You have no say in what it was trained on, how that training data is labeled, what the guardrails are, what biases it might have, none of that.
    • pronik4 hours ago
      There is so much technology that we are unable to reproduce locally, I don't think LLMs are in any way different. There will be large LLM manufacturers, small LLM manufacturers, LLM artisanals, LLM enthusiasts and of course LLM consumers, just like with everything.
    • Ucalegon5 hours ago
      Depends on the domain. There are plenty of different use cases where the data needed for training is available for personal, or non-commercial, use. At that point, it does come down to compute/time to do the training, which if you are willing to wait, consumer grade hardware is perfectly capable of developing useful models.
    • woah3 hours ago
      Can you make your own CPU, locally?
    • RataNova4 hours ago
      That's a fair concern, but I'd separate training from inference here
    • cyanydeez5 hours ago
      That sounds like government. So your problem is mostly that you expect to have a collective social effort, but not enough to pay for it as a public good.
  • vb-84485 hours ago
    > Use cloud models only when they’re genuinely necessary.

    The problem is that it's much easier to use the SOTA models (especially if they are subsidized) instead of spending time fixing the knobs with the local one.

    I just realized this with coding agents, yeah, you probably shouldn't always use latest version at xhigh, but you will end doing it because you do the job in less time, with less "effort" and basically at the same price.

    I guess we'll see a real effort for local AI only when major vendors will start billing based on actual token usage.

    • lelanthran4 hours ago
      > The problem is that it's much easier to use the SOTA models (especially if they are subsidized) instead of spending time fixing the knobs with the local one.

      That's not a problem, that's a feature; I have something like 8 tabs open to different free-tier providers. ChatGPT, Claude and Gemini are the SOTA ones.

      I have no problem maxing one out, then moving to the next. I can do this all day, have them implement specific functions (or classes) in my code. The things is, because I actually know how to write and design software, I don't need to run an agent in a loop to produce everything in a day, I can use the web chatbots with copy/paste to literally generate thousands of lines of code per hour while still having a strong mental model of the code that I can go in and change whatever I need to.[1]

      ---------------------

      [1] Just did that this morning on a Python project: because I designed what I needed, each generation was me prompting for a single function. So when I needed to add something this morning I didn't even bother asking an chatbot to do it, I just went ahead directly to the correct place and did it.

      You can't do that if you generate the entire thing from specs.

      • vb-84483 hours ago
        We are speaking about local AI, and having all this SOTA models basically for free is blocking the progress of local or independent third party setups.
        • lelanthran3 hours ago
          Maybe I should have clarified what the feature is (After re-reading my post, I see that I basically just ended after adding the footnote)

          The feature of using all these SOTAs to exhaustion on the free tiers is burning their VC money!

          The more I use for free, the more of their money I burn, the closer we'll get to actual 3rd-party and independent setups (local or otherwise).

    • RataNova4 hours ago
      The path of least resistance usually wins, especially when the pricing hides the real cost
    • Analemma_5 hours ago
      I'm also just not seeing good performance from local models. Every time a thread about LLMs comes up, there are tons of people in the comments insisting that they're getting just as good results from the latest DeepSeek/qwen/whatever as with Opus, and that just hasn't been my experience at all: open-source models just fall over completely compared to Claude when asked to do anything remotely complicated.

      I have a sneaking suspicion this is kinda like the situation with Linux in the 90s, where it kinda worked but it reeeeeally wasn't ready for the home user, but you had a lot of people who would insist to your face everything was fine, mostly for ideological reasons.

      • lelanthran4 hours ago
        > Every time a thread about LLMs comes up, there are tons of people in the comments insisting that they're getting just as good results from the latest DeepSeek/qwen/whatever as with Opus, and that just hasn't been my experience at all: open-source models just fall over completely compared to Claude when asked to do anything remotely complicated.

        Different usage patterns - you want to issue a single spec then walk away and come back later (when it has consumed $10k worth of API tokens inside your $200/m subscription) to a finished product.

        Many people issue a spec for a single function, a single class or similar. When you break it down like that, the advantages of SOTA models shrinks.

        • vb-84483 hours ago
          My experience is that in medium/big codebases even with single functions going with the xhigh is basically better from a user perspective (faster to get the result, and you can trust it) while going with lower models(e.g. sonnet instead of opus) you have to always carefully review the output because 1 of 10 it will hallucinate, you won't catch it immediately and at some point it will bite you.
          • lelanthran3 hours ago
            > My experience is that in medium/big codebases even with single functions going with the xhigh is basically better from a user perspective (faster to get the result, and you can trust it) while going with lower models(e.g. sonnet instead of opus) you have to always carefully review the output because 1 of 10 it will hallucinate,

            What do you mean "trust it"? It sounds like you want to vibe-code (never look at the output), and maybe for that you need SOTA, but like I said in a different comment, I can easily generate 1000s of lines of code per hour just prompting the chatbots.

            I don't, because I actually review everything, but I can, and some of those chatbots are actually SOTA anyway.

            • vb-84483 hours ago
              With SOTA models I can just set up the instructions (even a little bit fuzzy), go away for 10 or 15 minutes, come back and just check result and adjust when necessary (and most of the time small adjustment are necessary, but the overall work is pretty good).

              With subpar models I must be more careful on providing instructions and check it step by step because the path it chose is wrong, or I didn't ask for or the agent stuck in a loop somewhere.

      • kgeist4 hours ago
        It depends a lot on how you run those models. I think a lot of disagreement is because of that. A lot of people run local models with incredibly small context windows (makes an agentic LLM circle in loops), use very small quants (like 4 bit => huge degradation), don't set the recommended parameters (like top-p/temperature), or download GGUFs with broken chat templates. And then they claim model X is bad :)

        I'm currently running both Sonnet 4.6 and Qwen 3.6-27b on the same codebase (via OpenCode, the parameters were carefully tuned to have a good quality/context size ratio), and on this project, they both struggle with complex non-trivial tasks, and both work flawlessly otherwise. Sonnet 4.6 understands the intent better if my task is ambiguously formulated, but otherwise the gap is pretty small for coding under a harness.

      • bilbo0s4 hours ago
        This.

        I’ve begun to suspect that most people are probably running different hardware. Sure, you run the latest deep flash on your brand new M5 128G maybe you get acceptable performance?

        But honestly, how many people have an extra $9000 laying around these days?

        Right now, running with acceptable performance is kind of a luxury. I wish the people who always say - “This is great!” - would realize that not everyone has their hardware.

        • vb-84483 hours ago
          Actually even with a 9k hardware you won't get good enough performance. There is an interesting video from antirez on trying to run deepseek v4 flash 2bits on a m3 max 128GB ... and the result is kind delusional: as soon as the context start growing you are around 20token/s.
          • kgeistan hour ago
            DeepSeek v4 Flash is around the same level as Qwen3.6-27b (with reasoning) at agentic coding (according to artificialanalysis.ai), and Qwen3.6-27b runs very fast on my RTX 5090 ($4-5k) without a noticeable degradation at 5 bits (Unsloth quants) and 8-bit KV cache (especially after llama.cpp's Hadamard transform commit): up to 262k context, 40-60 tok/sec generation (prefill varies, but generally a non-issue with a KV cache, you only pay for newly read files, one source file takes like a second usually). I'm currently successfully using it on a project, the quality and speed are good enough, often I forget it's not Sonnet 4.6. A larger MoE model doesn't automatically mean a better model; a large MoE quantized to 2 bits can easily perform much worse than a dense ~30B model. People often try to run those larger overly quantized models on Macs because unified memory sounds like a good deal, but in practice they may end up with worse quality and worse speed, without meaningful cost savings.
          • zozbot2343 hours ago
            Prefill performance used to be the real bottleneck on antirez's DS4 and that's been greatly improved by now, it doesn't perceivably slow down with growing context.
  • mattlondon5 hours ago
    Yet there is another post a few rows down where people are losing their shit that Chrome has a local LLM model that uses a couple of GB of space for local-inference.

    Damned if they do, damned if they don't.

    • dlcarrier5 hours ago
      Maybe don't use gigabytes of bandwidth and storage space, without asking.
      • hparadiz4 hours ago
        Easy. Stop using Chrome.
    • userbinator3 hours ago
      If I want a model I'll go download one. (And I did, not long ago, to play around with image generation.)
    • bytecauldron4 hours ago
      This is a bit disingenuous. People aren't losing their shit about a local model being installed. It's the lack of user autonomy. Just give the option to download a model instead of a silent install. It's not that hard. This is how every other local option works.
      • wmf4 hours ago
        AFAIK Apple and MS auto-download local models.
        • bytecauldron13 minutes ago
          Sorry, I should have been more specific. This is how every *good local option works.
        • FridgeSeal37 minutes ago
          The former has made a big deal about local inference and marketed that as an OS level feature.

          You can also…turn it off.

          Chrome silently elected people into it _and_ downloaded the model without asking because they decided that’s something they (chrome) fancied doing.

          The difference should be pretty obvious.

        • 3 hours ago
          undefined
    • aabhay5 hours ago
      This is a weird take. If its not opt in or you’re shoe horning it into a browser, then that sucks. Nobody is getting enraged that an app for running local LLMs downloads data to do so.
      • avadodin4 hours ago
        Although you can opt out and even disable the download feature when you build them in some cases, most of the local LLM tools are too download–happy by default.
    • fg1374 hours ago
      You might want to read the comments to understand what people are actually complaining about.

      This comment is quite dishonest about the nature of the discussion.

    • themafia5 hours ago
      If it was such a good and laudable idea why didn't they tell me about it before they activated it? It seems to me like they avoided it in the hopes that I wouldn't notice, because, presumably if I had, I would have IMMEDIATELY disabled it.

      Also why doesn't their task manager show that it's actually the one downloading? Why does it go out of it's way to hide this activity?

      Since I have conky on my desktop I could catch this immediately, and take the action I preferred with my own computer, which was to _immediately_ disable it.

      • StilesCrisis4 hours ago
        I'm guessing you immediately close the What's New Chrome tab when you update?

        https://developer.chrome.com/blog/new-in-chrome-148#prompt-a...

        https://www.google.com/chrome/ai-innovations/

        They have absolutely not been shy about any of this.

        • themafia4 hours ago
          I've never had a "What's new" tab ever open because I disable the customized home page where that's displayed. I'm guessing you're not aware that's an option.

          Please show me where in either of those documents it explains it's going to download a 4GB model.

          • crazygringo3 hours ago
            I use an extension that gives me a customized homepage, but I still always get the "what's new" tab on every major version upgrade.

            It's a totally separate tab that opens. It's got nothing to do with what you use as your homepage.

    • ekjhgkejhgk5 hours ago
      You don't understand the difference between "I run a local LLM because I chose to" vs "The browser chose to run a local LLM and I have no say"? You don't understand?

      Not to mention that the LLM that I choose to run requires a monster machine and is infinitely more capable than whatever google chose to put on their browser?

      I mean, none of this affects me because I don't use chrome, obviously, but you don't see the difference? Bewildering.

      • StilesCrisis4 hours ago
        Did you opt into WebGPU? QUIC? Canvas 2D? Brotli? Browsers don't work that way.
        • za_creature4 hours ago
          The size difference between the local LLM and all of the above is about... the size of the local LLM.
  • mercurialsoloan hour ago
    Not your weights not your brain. Owning your own action and decision model is super important as these models emulate more of our decisions, thinking and learning. Built claudectl - a local brain for coding agents https://github.com/mercurialsolo/claudectl
  • hyfgfh3 hours ago
    Local LLMs is the only thing viable and probably the only thing it will remain once the hype dies down.

    A smaller cheaper local model can delivery most the value for coding, while we still use some services for code review and security compliance.

    Once the VC money runs out and they start to charge the real price, the C-level will have to impose budges or limits. The current pissing contest over who can expend the most tokens is both ridiculous and shortsighted

  • manlymuppet2 hours ago
    People are trying to “make the best software”, though.

    I think the Quixotic accelerationists of AI are more or less a vocal minority of the people who make software, and the choice of online APIs over local systems is largely a choice made for users, rather than developer’s laziness.

    You can do more and better with private AI today than with local models. There is no getting around that. Even if local AIs get better, being on the cutting edge of LLM performance is often a very worthy investment.

    Most people won’t settle for a product if it’s not the very best and incredibly convenient. That’s a high bar, and local AI often doesn’t meet those standards.

    HN’s insistence on treating all users like they are open-source, privacy-first, self-hosted Linux fanatics is painfully corny.

    • jduba minute ago
      > Most people won’t settle for a product if it’s not the very best and incredibly convenient.

      ... uh?

  • Animats4 hours ago
    Question: for software development, how much of an AI do you need for local development? Can it be run locally? Can someone train something that knows a lot about software but lacks comprehensive coverage of history, politics, and popular culture?
    • mrkeen4 hours ago
      This is a good snapshot of things:

      https://news.ycombinator.com/item?id=48050751

      A specialist handrolls a cut-down framework to power a 1 or 2 bit quantised version of a cut-down sort-of-frontier model.

      It can be yours if you have 128GB or 256GB of RAM.

    • 4 hours ago
      undefined
    • dd8601fn4 hours ago
      The ones that are good for more than elaborate auto-complete are pretty hefty, but it can be done. They’re still not Opus behind claude code.
  • holtkam25 hours ago
    I wish I could upvote this twice. We (devs) really REALLY need to consider on-device compute before going to the cloud for LLM inference.
  • rarismaan hour ago
    I think with turbo quant forks eventually being merged, its becoming more feasible on mid tier consumer h/w

    Dont quite think its ready yet.

  • jjordan5 hours ago
    It feels like we're one technological breakthrough away from all of these data centers going up to be deemed irrelevant.
    • Lalabadie5 hours ago
      The cynical take is getting more and more to be the only rational one:

      The promised mega-data center deals are meant to boost valuations today, not serve tons of customers three years from now.

      • _heimdall5 hours ago
        It seems pretty clearly inline with the dotcom bubble to me. Every company claims to be a leading AI company, those building infrastructure are promising the moon and getting 1/3 of the way there, and no one knows how to monetize it justify the hype or expense.
      • jjordan5 hours ago
        oof, this bubble popping is gonna be brutal.
    • krupan4 hours ago
      It took us only, what 70-ish years of computer and AI research to get to this point, so yeah, probably just one little thing and then we'll have it </sarcasm>

      Seriously. I have never ever seen so many people so willingly drink the marketing kool-aid from companies selling their product before. It's scarier to me than any threats of AI actually disrupting society (because it is so far from being capable of doing that).

    • i_love_retros5 hours ago
      What would that breakthrough be?
      • Waterluvian5 hours ago
        Magic math and computer science that allows us to get the same quality response for a fraction of the GPU.
        • intothemild5 hours ago
          That's already happening. Qwen3.6 and Gemma4.

          Basically small and medium models that are crazy well trained for their sizes.

          Then we have a lot of specular decoding stuff like MTP and others coming to speed up responses, and finally better quantisation to use less memory.

          Local LLM is the future, and the larger labs know that the open models will eat their lunch once people realise that the gap is only a few months. If we were good with LLMs a couple months ago, we're good with the open models now.

          • krupan4 hours ago
            And how were those models developed and trained?
            • lelanthran4 hours ago
              > And how were those models developed and trained?

              That's irrelevant to my decision to use local or not.

              • krupan3 hours ago
                That's not what this thread is about? We're saying some new breakthrough is needed, someone said it already has happened, and I'm asking if it really has. Has it? I don't think so, those models are not in some way fundamentally different than other LLMs
                • lelanthran3 hours ago
                  > We're saying some new breakthrough is needed, someone said it already has happened, and I'm asking if it really has.

                  I didn't read "and how were those models trained" as "Are we there yet?"

              • 3 hours ago
                undefined
        • YZF5 hours ago
          The current LLMs are also "magic" so anything is possible. AFAIK there is no proof that the current architecture is optimal. And we have our brains as a pretty powerful local thinking machine as a counter-example to the idea that thinking has to happen in data centers.
          • _heimdall5 hours ago
            I want to ask what makes them magic, but even those building LLMs don't really know what happens when they run inference...

            I have to assume current architectures aren't optimal though, the idea that we stumbled into the one and only optimal solution seems almost impossible.

        • 5 hours ago
          undefined
        • toufka5 hours ago
          I mean, the most cutting edge of iPhones, iPads and MacBook Pros _today_ are quite capable of running in realtime today’s high-end local LLMs.

          If you project out that hardware just a couple of years, and the trained models out a couple of years, you end up in a place where it makes so much more sense to run them locally, for all sorts of latency, privacy, efficacy, and domain-specific reasons.

          Not all that different from the old terminal & mainframe->pc shifts.

          Finally - hardware has seemingly gotten out ahead of software that most folks use - watching YouTube, listening to music, playing a game or two. There was a time when playing an mp3 or watching a 4k video really taxed all but the nicest systems. Hardware fixed that problem, like it very well could this one.

          • sofixa4 hours ago
            > I mean, the most cutting edge of iPhones, iPads and MacBook Pros _today_ are quite capable of running in realtime today’s high-end local LLMs

            Definitely not the high end local LLMs. The small ones, yes, absolutely.

            > If you project out that hardware just a couple of years

            One of the biggest bottlenecks for LLMs is memory capacity and bandwidth. With the current glut for memory, it's unlikely we'll see lots of advancements in terms of average memory available or its bandwidth on regular (not super high end devices) in the coming years.

            Alternatively, it's possible we get dedicated SMLs for e.g. phone specific use cases, that are optimised and run well.

        • 5 hours ago
          undefined
      • _heimdall5 hours ago
        I'd assume its a totally different architecture that isn't based on storing a compressed dataset of all digital human text.
  • hackyhacky4 hours ago
    I would like a standardized API for local AI to exist outside of the Apple ecosystem. The Prompt API is Chrome is halfway there.

    * What is the answer to local AI for native apps on Windows?

    * What is the answer to local AI for Linux?

    This is a big opportunity for Linux, given the high quality of open-weight models. I hope some answer emerges before designs fracture and we get a dozen mutually incompatible answers.

    • franze4 hours ago
      i researched that question for apfel https://github.com/Arthur-Ficial/apfel and standardized API is openai api so thats what i went with
      • hackyhacky3 hours ago
        OpenAI's API is not local AI.
        • zozbot2343 hours ago
          Most local AI servers expose that API.
    • teravor3 hours ago
      > What is the answer to local AI for Linux?

      run an ai api endpoint on a unix domain socket

  • deivid2 hours ago
    Sounds great, but if you din't cave to apple/google (eg: graphene, lineage), models are not built-in. Every app needs to ship their own models, and they are not tiny.

    Is there a solution for this? I'm currently just making users download onnx models if they want a feature, but it's not smooth UX

  • ksec4 hours ago
    While I agree that would be the goal, we are too early for that. Just like how speech recognition used to require many server in a Datacenter to process and you send your data over. It is now completely on devices.

    We are at least 5 years away from that. And DRAM needs a substantial breakthrough in cost reduction.

  • everlier3 hours ago
    There was never a better time to run LLMs locally. It's just a few commands from zero till a fully working LLM homelab.

    ``` harbor pull unsloth/Qwen3.6-35B-A3B-GGUF:UD-Q4_K_XL

    # Open WebUI -> llama.cpp + SearXNG for Web RAG + OpenTerminal as sandbox harbor up searxng webui llamacpp openterminal ```

    That's it, it's already better than Claude's or ChatGPT's app.

  • TechSquidTV2 hours ago
    Local AI will catch up. Unless we can't get our hands on hardware anymore, which is a legitimate concern I have.
  • daishi554 hours ago
    > We are building applications that stop working the moment the server crashes or a credit card expires

    Isn’t this true of any application that accesses anything not running on your computer? This is just describing what it means to add an API call to your app. Nothing to do with AI (?)

    • simonkagedal3 hours ago
      Furthermore, for the example given, it would have made a lot of sense to me to generate those article summaries on the backend. Once and for all, no need to burden each client device (which are going to need to download the content anyway), no need to tie yourself to a specific provider (Apple in this case), can have the same experience everywhere. Of course, the backend could use a local (to itself) model.

      Not saying it’s _wrong_ either – maybe it doesn’t use a backend of its own (the client downloads content directly from some predefined set of sites), maybe there is functionality to adjust how the summaries work that benefit from doing it on device, etc. Just doesn’t convince me that ”local AI should be the norm”.

  • RataNova4 hours ago
    I mostly agree, though I think local AI will need better UX around failure modes. Cloud models are often used not just because developers are lazy, but because they are more capable and easier to support consistently across devices.
  • msteffen4 hours ago
    > One of the current trends in modern software is for developers to slap an API call to OpenAI or Anthropic for features within their app.

    Well there’s your problem, control needs to go the other way. If you want your app to be AI-enabled, you need to make it easy for AI to control your app. Have you used OpenClaw? It’s awesome!

  • FrasiertheLion3 hours ago
    Overall I'm bullish on standardized local APIs that ship with the browser or platform. Far more tractable than expecting end users to stand up their own local model instances, though r/LocalLLaMA is a fantastic community to follow if you want to go that route.

    A useful framing over “local vs cloud AI” can be split along two axes: does the task touch private data, and does it need frontier intelligence? You can use frontier models for developing the software (doesn’t touch data), but open-source models running locally for ops: maintenance, debugging and monitoring (touches data). If you need to fall back to frontier intelligence at some point for a particularly hard to resolve problem, you can still rely on local models for pre-transforming and filtering input in a way that's privacy-preserving or satisfies some constraint before it’s sent off to the cloud for processing. OpenAI's privacy filter is a good example of a model that can be used to mask PII and secrets and that can run locally: https://openai.com/index/introducing-openai-privacy-filter/, before sending any data externally for processing.

    Another framing for local vs frontier closed which the article mentions is whether the task saturates model capability. With certain tasks like PDF processing or voice or summarization, adding more intelligence isn't necessarily useful. Arguably we've approached that point for chat interfaces already with frontier open-source models. But for coding and ops through well structured tool use inside a coding capable harness, we're still a ways away.

    Tangentially, a contrarian take here is that AI can actually enable more privacy preserving software if you’re so inclined. You can just build personalized software and it lowers the barrier to entry and the effort required to self host. SaaS complexity often comes from scaling and supporting features for all types of customers, and if you're building software for personal use, you don't need all that additional complexity. Additionally, foundational and infra software that is harder to vibecode with AI is often already open source.

  • krupan4 hours ago
    Here I was hoping that this was some plea for us to get away from proprietary solutions that we have no control over and go back to open source, but no, not that at all.
  • Galanwe6 hours ago
    I would love for local inference to be possible, but from my experience, Kimi 2.6 is the only model that would be worth it, and its a $10k (M3 Ultra max spec'd - 30s TTFT so kind of slowish) to $30k (RTX6000/700GB+ DDR5) upfront, noise / power consumption aside.
    • mft_5 hours ago
      You're maybe missing the article's point, which is to use local models appropriately:

      > “But Local Models Aren’t As Smart”

      > Correct.

      > But also so what?

      > Most app features don’t need a model that can write Shakespeare, explain quantum mechanics, and pass the bar exam. They need a model that can do one of these reliably: summarize, classify, extract, rewrite, or normalize.

      > And for those tasks, local models can be truly excellent.

      • Galanwe5 hours ago
        This is a bit naive IMHO...

        I have tried quite a bunch of local models, and the reality is that it's not just a matter of of "it's a small model that should be hostable easily". Its also a matter of whats your acceptable prefill TTFT and decode t/s.

        All the local models I used, on a _consumer grade_ server (32GB DDR5, AMD Ryzen) have been mostly unusable interactively (no use as coding agent decently possible), and even for things like classification, context size is immediatly an issue.

        I say that with 6m experience running various local models for classifying and summarizing my RSS feeds. Just offline summarizing ans tagging HN articles published on the front page barely make the queue sustainable and not growing continuously.

        • mft_4 hours ago
          1) Again, I suspect you're missing the point of the article. The iPhone's on-device LLM is (apparently) ~3 Bn parameters - and runs well/fast enough to be used in the manner described. Of course, the iPhone has its GPU to leverage.

          2) It's probably not the time/place to trouble-shoot your "consumer grade server" LLM experience, but if you're running on CPU (you don't mention a GPU) then yeah, your inference speed will be slow.

          3) Counterpoint: my consumer-grade Macbook Pro (M1 Max, 64GB) runs Qwen3.6-35B-A3B fast enough to be very usable for regular interactive coding support. (And it would fly with smaller models performing simpler tasks.)

      • mikrl5 hours ago
        One of my hobbyist workflows involved transcribing ETF prospecti into yaml for an optimizer to optimize over.

        Used to take me maybe 10-20 minutes per sheet.

        Then I got codex to whip up a script that sends each sheet to a fairly low parameter locally running LLM and I have the yaml in a couple seconds.

        My dream is to bootstrap myself to local productivity with providers… I know I’ll never get there because hedonic treadmill etc, but I do feel there’s lots more juice to squeeze. I just need to invest more time into AI engineering…

  • 1a527dd54 hours ago
    Consumer/private needs to be local.

    Work? I don't want it local at all. I want it all cloud agent.

  • rduffyuk4 hours ago
    agree with the article but the limitation for local llm usefulness is the limited scope from my experiments. eventually context heavy data pipelines require larger models which consumer hardware can't deal with yet. the local model for summary on a page like you describe could be done via code as well, i've found using an llm isn't always the right choice. for example i use ner tagging in my md docs for better indexing and llm search capabilities. this is purely code based and not via an llm. tried with an llm and the results were a lot worse. augmenting tools to make the llm produce better outputs gives better results.
  • Salgat3 hours ago
    Local models are much less energy efficient right?
    • HDBaseTan hour ago
      It's a good question, although I think hard to quantify.

      If you are simply measuring Watt Cost per Token, you are missing the mark drastically. You have to measure quality output per Watt.

      It sounds reasonably difficult to benchmark this, maybe I'm wrong though.

  • vegabook5 hours ago
    >> years ago I launched "The Brutalist Report"

    proceeds to brutalise the reader with an 88-point headline font.

  • prometheus19923 hours ago
    Agreed, but the way ram prices are going, I don't think we would be able to afford hardware that can run any useful model.
  • eyk195 hours ago
    Apple stock is going to skyrocket
  • ChoGGi3 hours ago
    Who can afford local AI?
    • m4633 hours ago
      Who can afford to backup their own photos?

      who can afford a house?

  • agentifysh5 hours ago
    Until the hardware is economical and powerful enough, local AI that can compete with frontier models today is still far off.

    If we could even get something like GPT 5.5 running locally that would be quite useful.

  • refulgentis4 hours ago
    The shitty thing here is, either everyone's shipping 800 MB at least with their binary, or, you have to rely on the platform vendor anyway. I'm hoping there's enough external pressure that the OS vendors turn it more into a repository than a blessed-model-garden.
    • wrxd4 hours ago
      To be fair the author of the post is using the model Apple provides with the OS so it doesn't have any extra binary size
  • wilg5 hours ago
    Two issues -

    1. Local models are likely to be more power-expensive to run (per-"unit-of-intelligence") than remote models, due to datacenter economies of scale. People do not like to engage with this point, but if you have environmental concerns about AI, this is a pretty important one.

    2. Using dumb models for simple tasks seems like a good idea, but it ends up being pretty clear pretty quick that you just want the smartest model you can afford for absolutely every task.

    • manc_lad4 hours ago
      I think using the best model for every tasks makes sense when these models are subsidised. when the prices go up (assuming they do) this could trigger a more varied approach. assuming the model doesn't self select for you.
  • dana3215 hours ago
    "NO AI" needs to be the norm, we should be working on better ways of sharing information and better documentation instead of fighting with computers for substandard results.
  • williamtrask6 hours ago
    I wonder if a popularization moment for local AI will ultimately be the pin-prick that pops the AI bubble. Like the deepseek or openclaw moments but bigger/next.
    • gdulli5 hours ago
      That's like wondering if enough people discovering local media streaming will disrupt commercial streaming services. It's not going to happen. Most people are not ambitious and will let themselves be controlled by the services of least resistance.

      And you can't take comfort in knowing that you, personally, will remain in control of your own computing. The majority will let the range and direction of their thoughts and output be determined by the will of the tech giant whose AI they adopt. And that will shape society.

      • HDBaseTan hour ago
        I like the analogy of streaming services vs local media streaming, although I don't think it holds up when looking at history.

        Streaming Services are getting worse and more expensive. I don't see a single report suggesting piracy is decreasing, it seemingly is only increasing now.

        When costs increase, quality decreases people look for alternatives. The advent of faster broadband enabled Napster and MP3 sharing. I think this could have a resurgence if the peices align correctly (a new bitorrent client, a new torrent site, something to break the status quo).

        How this related to AI, I don't know, although I wouldn't be set on the idea that we will never have local AI as the norm. There is a lot more movement in this space then there is for local streaming imo.

      • williamtrask4 hours ago
        Yeah... probably right. I do hold out hope that this is mostly a timeframe thing. Like, the library, printing press, etc. all had their moments of centralization. But eventually they federated.
  • krupan4 hours ago
    If you don't need a lot of smarts, do you even need an LLM? Aren't older machine learning techniques just as good, or like, you know, old-school algorithms?
  • holoduke4 hours ago
    We need computers with 128gb or maybe even 192gb of memory before local use make sense. From my own experience 32b LLMs are the absolute minimum for proper tool use and decent output quality. But for local ai you want also vision models and maybe even various LLMs. Plus some memory for the system of course. On my 36gb M3 the 24b Gemma model is nice. But the entire system gets allocated for that thing.
  • hypfer5 hours ago
    Same as local compute.

    Welcome back to 2014. Let us now continue yelling at the cloud.

  • shmerl5 hours ago
    Depending on some remote AI provider is a major lock-in pitfall. But it's exactly what those AI providers want you to do.
  • artursapek5 hours ago
    I'm someone who is trying to build a subscription-based business to cover underlying LLM costs, and very hopeful I can one day just sell a permanent license to the software instead with customers using local LLMs to power it.
  • jmyeet3 hours ago
    I've been looking into options for this and we are getting close. There are two main constraints: memory and memory bandwidth.

    NVidia segments the market by limiting the amount of memory on GPUs. It currently tops out at 32GB (on a 5090) but it has excellent memory bandwidth (~1.8TB/s). If you want more than the you need to buy an RTX Pro (eg RTX 6000 Pro w/ 96GB for ~$10K) or you get into high high end solutions like H100, H200, etc that have significantly more memory and even higher bandwidth on HBM memory (eg 3.2TB/s+).

    NVidia has released the DGX Spark w/ 128GB of memory for ~$4k. The problem is the memory bandwidth. It's only 273GB/s, which is less than the M5 Pro (307GB/s) but more than the M5. You can buy a 16" Macbook Pro with an M5 Max and 128GB of memory for $6k and it has a bandwidth of 614GB/s. So the DGX Spark is a joke, really.

    In case it wasn't clear, Apple is interesting in this space because it has a shared memory architecture so the GPU can use all the memory.

    Many, myself include, expect there to be no refresh to the 5000 series consumer GPUs this year, which would otherwise happen based on product cycles. So no 5080 Super, for example. And I wouldn't expect a 6090 before 2028 realistically.

    One thing Apple hasn't done yet is release the M5 Mac Studios, which are widely expected in Q3 this year. They are interesting because, for example, the M3 Ultra has a memory bandwidth of 819GB/s and previously had a max spec of 512GB but that got discontinued (and the 256GB version also got discontinued more recently).

    So many expect an M5 Max Mac Studio with 1TB/s+ bandwidth and specs up to 256GB or 512GB, probably for ~$10k later this year.

    You really have to use this hardware almost 24x7 for it to be economical because otherwise H100 computer hours are probably cheaper.

    But what happens when the next generation of GPUs comes out to the trillions in AI DC investment? It's going to halve its value. That's over $1 trillion in capex that will disappear overnight, effectively.

    I think Apple is the dark horse here because they have no interest in NVidia's psuedo-monopoly. I'm just waiting for them to realize it.

    Now CUDA is an issue here still but I think as time goes on it's going to be less of an issue. Memory is still a huge constraint both in terms of price and just general supply because NVidia can justify paying way more for it than you can, probably.

    It's still sad to see that 128GB (2x64GB) DDR5 kits are almost $2k now and werre $400 a year ago. Expect that to continue until this bubble pops (which IMHO it will) and we're likely in a global recession.

    So the other issue is models. OpenAI and Anthropic are built on proprietary models. Their entire valuation depends on this moat. I don't think this last so both companies are doomed because open source models are going to be sufficiently good.

    We can already do some reasonably cool stuff on local hardware that isn't that expensive and even more so once you get to $5-10k hardware. That's going to be so much better in 2 years that I'm hesitant to spend any amount of money now.

    Plus the code for running these things is getting better. Just in the last month there have been huge speed ups in local LLMs with MTP.

    • zozbot2343 hours ago
      > So the DGX Spark is a joke, really.

      Not at all sure about that. They have really good compute, and DeepSeek V4 (with antirez's 2-bit expert layer quant) may be able to leverage that compute via parallel inference - the jury is still out on that. Now if you had said Strix Halo/Strix Point or perhaps the Intel close equivalents, that would've been a slightly stronger case.

    • regexorcist3 hours ago
      > So many expect an M5 Max Mac Studio with 1TB/s+ bandwidth and specs up to 256GB or 512GB, probably for ~$10k later this year.

      This is what I'm really waiting for. It will enable models comparable to current SOTA at the enthusiast price range.

    • heydryft2 hours ago
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  • sgt8 hours ago
    I guess Google got that memo!
  • cubefox5 hours ago
    Local AI is a bit like wind parks. Everyone is in favor, except if they are in your own backyard. There was recently a huge outcry when Chrome shipped a local 4 GB AI model: https://news.ycombinator.com/item?id=48019219

    I have to conclude that people would like to have powerful local AI but it should at the same time only be a tiny model. In which case it wouldn't be powerful.

  • shouvik1212 minutes ago
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  • barrkel5 hours ago
    Local models are extraordinarily expensive if you're not maximizing throughput, and you're not going to be maximizing it.

    Local models need to be resident in expensive RAM, the kind that has fat pipes to compute. And if you have a local app, how do you take a dependency on whatever random model is installed? Does it support your tool calling complexity? Does it have multimodal input? Does it support system messages in the middle of the conversation or not? Is it dumb enough to need reminders all the time?

    Spend enough time building against local models and you'll see they're jagged in performance. You need to tune context size, trade off system message complexity with progressive disclosure. You simply can't rely on intelligence. A bunch of work goes into the harness.

    Meanwhile, third party inference is getting the benefits of scale. You only need to rent a timeslice of memory and compute. It's consistent and everybody gets the same experience. And yes, it needs paying for, but the economics are just better.

    • LPisGood5 hours ago
      > And if you have a local app, how do you take a dependency on whatever random model is installed?

      Reading the tea leaves here, it will probably be common for OS’s to have built in models that can be accessed via API. Apple already does this.

    • crazygringo3 hours ago
      I don't know why you are being downloaded. These are precisely the facts that advocates for local models completely ignore.

      Local models are absolutely going to be the future for things like simple automation and classification tasks that run occasionally and don't need to rely on internet access.

      But for all of the serious stuff where you are doing knowledge work, the models will simply continue to be too big, and too slow to run locally.

      The article says:

      > Use cloud models only when they’re genuinely necessary.

      But at least for me, they're genuinely necessary for 99+% of my LLM usage.

      At the end of the day, the constraint here really is efficiency and cost.

      Privacy can be ensured with the legal system, the same way that businesses that compete with Google still have no problem storing their data in Google Workspace and Google Cloud. The contractual guarantees of privacy are ironclad, and Google would lose its entire cloud business overnight as its customers fled if it ever violated those contractual agreements (on top of whatever penalties they allow for).

    • bheadmaster5 hours ago
      > And if you have a local app, how do you take a dependency on whatever random model is installed?

      Why not ship your own model? In the age of Electron apps, 10GB+ apps are not unheard of.

      • _heimdall5 hours ago
        Personally I wouldn't want a couple dozen apps installed all with their own model.

        It seems easier to have industry specs that define a common interface for local models.

        I also assume the OS can, or would need to, be involved in proving the models. That may not be a good thing depending on your views of OS vendors, but sharing a single local model does seem more like an OS concern.

        • alex7o5 hours ago
          I mean the openai API is the industry standard for allowing apps to communicate with models, llama-server has it, oMLX has it, ollama has it, vLLM has it, lmstudio as well. I don't think this is such a hard thing to do, but it requires people to set it up.
          • _heimdall5 hours ago
            I don't know enough about that API surface to know if its a particularly good one for the use cases we'd have, but yes defining a universal spec for all implementors to support wouldn't be a big lift and is done in plenty of other areas already.
      • alex7o5 hours ago
        There is no other way than shipping your own model, because you will want an abstracted API over the inference, and you don't know what the user has installed. Also you can ship 9b fp4 model but it all just depends
        • _heimdall5 hours ago
          Knowing what's installed would have to be an OS API. If LLMs provide a standard API surface to the OS, likely including metadata related to feature support.
        • LPisGood5 hours ago
          You can know what the user has installed if the OS developer offers something.