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They'll all be getting around to this sooner or later, its just too expensive

by 20k 2mo ago

akulbe 2mo ago
I posted on LinkedIn that I thought the future of AI will be local. I'm surprised I didn't get tarred and feathered, but it's been crickets. I do believe it though. While the subsidies of the frontier providers are nice, they can't continue forever.
- alightsoul 2mo ago
  That means people don't believe it. Same thing when people used to say personal computers would replace mainframes.
- ricardobayes 2mo ago
  I believe it's been crickets because open-source/DIY solutions almost never become mainstream. Devs tend to think everyone wants a self-service to save a few bucks. Most ordinary people don't care that much about privacy and if there is a solution that just works well enough to cover their needs and costs just fair enough to be affordable, they are going to use that. I feel like this is why fast food is such a thing. There are far better food options out there that either require a little bit more effort or money. Your post on Linkedin is akin to someone claiming in 1960's America that home-cooked burgers are the future, despite McDonalds gaining ground. It is also why crypto wallets and the like never took off, people don't want to give up the convenience of a bank account, understandably.
wongarsu 2mo ago
I get incredible utility out of $200 per month It's hard to put a number on it, but even accounting for all the time in meetings, talking with stakeholders and developers etc I'm over 10% more productive overall. I earn substantially more than $2000/month, the ROI is there It's only expensive compared to the currently very strong offering from OpenAI. Or other models - my hobby projects are all on DeepSeek
- moregrist 2mo ago
  What you’re saying is that they should be charging $2000 or more per month then. Perhaps that’s true, but it’s a price tag that’s a lot harder to swallow for many orgs than $200/mo, and would require some hard justification for how your increased productivity contributes to the business bottom line. I’ll agree that you can probably do that with hard numbers. I am skeptical that most $200/mo users could.
  - tmountain 2mo ago
    I think the rapid improvements in local models will make a $2,000/mo price point completely impossible to sustain. This feels like a race to the bottom.
oh_no 2mo ago
yes and no, anthropic and openai are losing money on people who max out their sub, but openai has a lot more room to play with with much cheaper models to serve (by all signs we have from actual api/task pricing)

They'll all be getting around to this sooner or later, its just too expensive

by 20k 2mo ago

They'll all be getting around to this sooner or later, its just too expensive

I posted on LinkedIn that I thought the future of AI will be local. I'm surprised I didn't get tarred and feathered, but it's been crickets. I do believe it though. While the subsidies of the frontier providers are nice, they can't continue forever.

alightsoul 2mo ago
That means people don't believe it. Same thing when people used to say personal computers would replace mainframes.
ricardobayes 2mo ago
I believe it's been crickets because open-source/DIY solutions almost never become mainstream. Devs tend to think everyone wants a self-service to save a few bucks. Most ordinary people don't care that much about privacy and if there is a solution that just works well enough to cover their needs and costs just fair enough to be affordable, they are going to use that. I feel like this is why fast food is such a thing. There are far better food options out there that either require a little bit more effort or money. Your post on Linkedin is akin to someone claiming in 1960's America that home-cooked burgers are the future, despite McDonalds gaining ground. It is also why crypto wallets and the like never took off, people don't want to give up the convenience of a bank account, understandably.

wongarsu 2mo ago

I get incredible utility out of $200 per month It's hard to put a number on it, but even accounting for all the time in meetings, talking with stakeholders and developers etc I'm over 10% more productive overall. I earn substantially more than $2000/month, the ROI is there It's only expensive compared to the currently very strong offering from OpenAI. Or other models - my hobby projects are all on DeepSeek

moregrist 2mo ago
What you’re saying is that they should be charging $2000 or more per month then. Perhaps that’s true, but it’s a price tag that’s a lot harder to swallow for many orgs than $200/mo, and would require some hard justification for how your increased productivity contributes to the business bottom line. I’ll agree that you can probably do that with hard numbers. I am skeptical that most $200/mo users could.
- tmountain 2mo ago
  I think the rapid improvements in local models will make a $2,000/mo price point completely impossible to sustain. This feels like a race to the bottom.

oh_no 2mo ago

yes and no, anthropic and openai are losing money on people who max out their sub, but openai has a lot more room to play with with much cheaper models to serve (by all signs we have from actual api/task pricing)