4 ms·
When we consider: * LLM usage is new for the world * Models are evolving quickly with high worldwide competition * Hardware is evolving despite RAM shortage
by sickcodebruh 1mo ago
When we consider:
* LLM usage is new for the world
* Models are evolving quickly with high worldwide competition
* Hardware is evolving despite RAM shortages
Is investing a huge sum of money in equipment for local inference a wise use of money? Or are M5 Ultra and equivalently priced local inference hardware future-proof enough to be worth it relative to how the market is evolving? Maybe it’s all a question of what you’d spend otherwise on serverless or dedicated GPU spend…
- rkangel 1mo agoIt is absolutely not worth buying hardware to run models for purely (long term) cost reasons. For open weights models the economies of scale means the cloud beats local significantly and your payback time is like 10 years. However there are other reasons (e.g. privacy) that might make it worth running locally for some people.
- WASDx 1mo agoI think the privacy argument that keeps coming up is overrepresented. Certainly ZDR is enough for an absolute majority of use cases? I see so much talk about local inference but I doubt most of it has privacy as a valid argument (not arguing it doesn't exist). It's fun to do things locally though. I've tried it as well but cloud is just faster and cheaper.
- rkangel 1mo agoThese companies have displayed zero respect for everyone's intellectual property getting these models trained. I think not giving them your complete trust is reasonable! I'm not saying zero trust, and ZDR is fine for most things but I understand the people who don't want to stream their whole codebase out token by token.
- WASDx 1mo agoThen use other providers hosting open models. Companies and individuals already put their whole code base on the cloud. I'm genuinely interested in privacy-oriented use cases where ZDR is not enough.
- Gigachad 1mo agoI'm not that worried about the codebase itself. I'm worried about the fact coding agents poke around the terminal and system so much that there is almost a certainty that some of your other personal data ends up in the context somewhere which is getting logged in to a training dataset by random hosting providers.
- applfanboysbgon 1mo agoZDR is built on trust. Given that end-to-end encryption fundamentally doesn't work with LLMs, as they need the content to be unencrypted to operate on it[1], you have no way to prove that once your plaintext data is on somebody else's server they aren't doing whatever the hell they please with it. All you have to rely on is their pinky promise that they won't do anything with it. Trust is a valid option, much of our society runs on trust, but you can eliminate the need for trust whatsoever by running on your own hardware. [1] Yes, I'm aware of experiments to operate on encrypted prompts, but these are only research attempts, not something that could actually be used with frontier models in production.
- elorant 1mo agoPrivacy isn’t only, I don’t want anyone to have access to my data. It could also be, I don’t want anyone to know my use case because it’s niche and highly profitable.
- joemazerino 1mo agoAnd compliance.
- jaggederest 1mo agoI think the biggest reason is to own the stack so your model can't be changed out from under you, but maybe I care about that too much.
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- zackify 1mo agoYou do, there's like 20 providers for any model on openrouter. You can also just spin bedrock or gcp and download the weights for later if you're worried. It's never going to make cost sense when the token rate is so low with how expensive ram is
- jaggederest 1mo agoWhat if the internet goes away?
- zackify 1mo agoStarlink? It's never gone anymore
- Aurornis 1mo ago> I think the biggest reason is to own the stack so your model can't be changed out from under you, The concern would be future regulations that prohibit you from buying a hosted version of the model. Even that could be bypassed with a VPN to another country but it's more work to go through the payments. As long as there is demand for a model, it will be hosted by multiple providers.
- jaggederest 1mo agoWhat if the model is hopelessly obsolete, and thus no demand, but I want that specific model? Owning the weights and hardware is not just solving for one problem. It eliminates all the classes of problems that occur outside of your building, if you have a solar and battery setup. Also, on a more practical basis, what if the way it's served is bad. Maybe I want my specific KV setup, or ultra low quant for entertaining garbage at 200 tk/s
- deleted 1mo ago[deleted]
- truncate 1mo agoI'm actively uninspired to write high quality code when using Anthropic/OpenAI models given the high chance I'm a customer as well as used as dataset generation tool for them. But currently cloud does beat costs of hardware ownership, particularly with ridiculously high RAM/GPU/SSD costs....again due to these same companies.
- somenameforme 1mo agoI think that's overly pessimistic. Here's [1] a video of somebody running it on a ~$6000 rig and getting around 14T/s for complex prompts (about double that for simpler prompts). Payback time is going to depend on your electric cost/consumption. In most domains cloud providers end up charging a significant premium rather than a offering a scale enabled discount, relative to local at retail costs. That will almost certainly end up being the case with LLMs as well, if it isn't already. Furthermore we continue to follow the path that image gen neural networks took. In that domain hardware requirements reached a peak and then started sharply declining to where we are today where a plain old video card can rapidly generate images that took a supercomputer not that long ago. So it's reasonable to assume that performance of such a system could potentially even increase over time. [1] - https://www.youtube.com/watch?v=ZWS2JVN2iBI https://www.youtube.com/watch?v=ZWS2JVN2iBI
- millicentricism 1mo agoWith roughly 2.7 million seconds per month, times 14 tokens per second, you are getting 38.5 million tokens a month at most. That’s less than 164USD worth of GLM5.3 tokens on the inference market. So that 6000 USD rig will take 3 years to break even - and only if it runs continuously. And this is being generous, as it’s not even taking quantisation into account.
- somenameforme 1mo agoI think if you steel-man what I'm saying, what you're saying falls apart. 14 tokens per second was rare. It only dropped that low in one scenario where he had it single shot an entire game (flappy bird clone) from scratch, with different assets, all self created, and so on. It ended up resulting in the LLM doing stuff like plotting out a some odd 100 item long to-do list, requerying it repeatedly, and so on. And it succeeded. Also as the video mentions, the guy wasn't very familiar with what he was doing, and so there are almost certainly various optimizations on the config side he could work out, especially as he was using a 5 GPU system, which default configs are probably not well optimized for. But I think we've rapidly moving along the same path as image gen stuff. Local generation has gone from purely theoretic, to requiring supercomputers to run relatively incapable models, to where we are today - where with a fairly basic high end setup, he's comfortably running a frontier level model. There's definitely an argument for going local that's only growing stronger by the day.
- comandillos 1mo agoI mean, I think it depends. At home 3 of us we use AI for multiple reasons, from coding apps to asking general questions, and if we would have to pay equivalent subscriptions that would be ~1k a year on AI + submitting all your data to external services. I payed around ~8k on 2 DGX Sparks that, at the moment, serves perfectly fine as a ChatGPT/Claude replacement at home (DS4 Flash peaking at ~170 tokens per sec with 6 concurrent sequences), and even once the technology is obsolete for inference in a few years, I will still have 2 pretty powerful machines for whatever I need + some pretty fast NVME Storage. I don't think its a terribly bad idea.
- alexpotato 1mo ago> It is absolutely not worth buying hardware to run models for purely (long term) cost reasons This is especially true when it's trivial to have the LLM itself write you a script/tool that can rent a GPU node for you (via API calls to providers) and then download and set up an open weight model for you.
- jrm4 1mo agoIt seems absurdly naive to rely on "oh, the cloud AI of the future will definitely be as open and priced the same way it is right now." And not "Hey, these companies have a history of giving you something nice now, and rugpulling you either in quality or price later." Your "absolutely" seems silly.
- solarkraft 1mo agoSo far I don’t regret buying an M1 Max device with 32Gb of RAM. The models available for it keep getting better (running just about okay for interactive use) and 400 GB/s of bandwidth is still considered a lot. The models are currently improving much faster than the hardware and this doesn’t seem to have plateaued yet.
- frigidwalnut 1mo agoCool! I'm thinking about a local set up. What's your usual tokens/second rate?
- victords 1mo agoNot OP, but I’m running local models on a M1 Max as well with 64GB RAM. It varies by model, but I’m getting 50-60 t/s with Qwen 3.6 35B and Qwen 3 coder 30B. I’ve also used Qwen 3.8 27B but I get 10t/s on it. It’s useable in some use cases, but I rely mostly on my $20 Claude subscription.
- copperx 1mo agoThat's so cool. I wonder if the regular M5 can run those models too.
- darthcircuit 1mo agoI run qwen 3.8 27b on my m5 mbp, with 48gb of unified ram and I’m getting around 10-15 tok/s. 3.6 35b a3b, I’m getting upwards of 100
- spider-mario 1mo agoTry 3.8 27B in MTPLX; I get about 30 tok/s with the same hardware as you. (Although it does use around 90-95W of power, compared to the ~60W that 3.6 35B-A3B uses to generate 55 tok/s. That’s about 3 J/tok instead of 1.)
- solarkraft 1mo ago
- lenerdenator 1mo agoThat's basically the question I'm trying to answer. If you're paying Anthropic or OpenAI to use their models, harness, governance, etc., I could see the local inference potentially coming out ahead. They're already starting to ratchet down what your money gets you on their platforms, and that can be expected to continue as the leaders of those companies continue to seek the road to the El Dorado that is being a trillionaire.* If you're looking to get into the guts of AI development instead of having it handed to you by a provider, that's where it gets murky. I'm wanting to write some sort of agent that does things and get into making outputs consistent in the like, and I'm not sure whether to host something on GCP or buy an M5 Mac. *Note: El Dorado is a mythical city and many people died trying to find it.
- deleted 1mo ago[deleted]
- sneak 1mo agoPart of it is knowing that whatever sort of enshittification the cloud providers do, my local programming environment won’t ever be less effective than it is today locally. It’s the same reason my entire development stack from editor to compiler is open source. I don’t need to modify it today, but I always must retain the option to do so later. There are several things I do in my life that only pay off in the event of a big disaster, like an extended internet outage, civil unrest, supply chain disruption, war, etc. I like to be able to do the things I do even if offline for weeks. I spent a lot of money for more flash in my iPad Pro so I can keep all of offline wikipedia and OSM in it, for example, along with tons of books. It’s sort of like being a digital prepper. (Being a prepper is a spectrum, from anyone who keeps food in their pantry to people building bunkers under their house - how much you invest is a personal prudence and threat modeling decision.) Also, privacy. And when I got the Mac Studio the 512GB was only $15k, which is dirt cheap for that much VRAM.
- Frost1x 1mo ago> Part of it is knowing that whatever sort of enshittification the cloud providers do, my local programming environment won’t ever be less effective than it is today locally. Is that true though? Many of the core LLMs need to be retrained as languages evolve to incorporate changes (language specifics, compilers, tooling, etc.). To some degree this can be handled via context injection in a variety do forms (agents looking up documentation and so on) but inevitably it’s not stationary in time, just as your OSS stack (probably) isn’t (depending on the languages, technologies, and use cases). So your hardware is to some degree dependent on the good merit of groups like Z or Alibaba or whomever pushing out updated open weight models that dumped loads of capital into to train. You can keep using the existing models but at some point I suspect they’ll start to have more friction due to dated specs in language and so on. Again there are tuning and ways of layering this information on, and in theory you can even do some training on your own but I don’t think it’s as stationary as being portrayed here. Those updated open weight models may not always be there (updated on new data). The usability of them is probably fairly long to be fair, but I suspect you’re going to see explosion in everything from libraries to languages etc due to LLMs so even the rate of change across your OSS stack may cause these models to be dated quite quickly, at least in the core model which will require layering fixes. To be clear I’m on the fence thinking about much of the same issues and as close as I am to pulling the trigger, I keep thinking of very valid counter arguments as to why it’s me just wanting this thing I own. Which may be enough.
- anarticle 1mo agoTools vs services in my mind. There is no guarantee any provider will continue to do what they are doing for you at the price they are doing it. The object permanence of not having to reinvent the world every time a model gets sunsetted has value.
- andriy_koval 1mo ago> Tools vs services in my mind. There is no guarantee any provider will continue to do what they are doing for you at the price they are doing it. with open models, there is ecosystem/market of providers, where you can easily switch to provider you like
- stymaar 1mo agoUntil there's an executive order that blocks one model from being served.
- andriy_koval 1mo agosuch order can target any provider (including closed models) as we know.
- spider-mario 1mo agoRight, but not a model you have already downloaded onto your machine.
- andriy_koval 1mo agothe same you can access oversea model providers.
- ewwefwef 1mo agoDo You have guarante any electricity price?
- snarfy 1mo agoJalapeno is matching or very near Vera Rubin at 1/4 the power. I would not buy hardware now.
- SwellJoe 1mo agoI have a Strix Halo and dual 32GB GPUs in my desktop, that sit idle right now, because the electricity to run them and to cool them in 110F weather Texas is currently experiencing pretty much nulls any savings I might see over getting better models from cloud providers. While I mostly use Claude or Codex with subscriptions for agentic work, for API use DeepSeek has usually been my go to, but now I guess it's GLM 5.3 or the Flash version. And, for security work that Anthropic or OpenAI models are likely to refuse, I've been using Kimi K3 (also via subscription, though their subscription is extremely stingy), but I guess GLM is now the one for that, too. Anyway, yeah, even at the prices I spent on my local AI stuff (I bought before RAMpocalypse really kicked into gear, so I bought old server GPUs for about $350 each and the Strix Halo for a little over $2k) it was never going to pay for itself; I just like to tinker. But, I can't imagine spending today's prices for hardware for local AI. When the memory shortage ends, I'll be down to the Apple Store (or, more likely, clicking refresh on the Apple outlet every few days). But, until then, there continues to be a glut of cheap and free models in the cloud that are better than anything I can run locally and they're faster, too.
- Barbing 1mo agoToo hot and expensive to run right now but a great hedge for peace of mind against $200 subscriptions shooting up to the $4000* they should cost. *$1000? $14,000? Who knows but everything in the middle there has been claimed.
- loglog 1mo agoIf they "should" cost 4k in the sense of marginal cost, then you will be spending more running the same at home, because your home hardware will always be less efficient.
- RevEng 1mo agoThere is a big difference in the cost of a 5-nines up time system in a heavily space constrained environment compared to a home hobby white box used for some coding. The GPUs alone cost 10x for the data center versions compared to the gaming versions even with similar specs. The cost of online services is also largely a result of the cost of training (though hard to say exactly what that number is). Assuming you are using open weight models at home, you aren't paying for the training - someone else is.
- hgoel 1mo agoOnly reason to spend a bunch of money on hardware to run LLMs locally is if it's a hobby to you to an extent that even renting the GPUs temporarily won't satisfy you.
- NitpickLawyer 1mo agoOr if you need stuff that APIs don't / can't provide. Or for future proofing your workflows. Running things locally gets you "the same thing" in perpetuity, while APIs might change, models can be deprecated and features can be removed. Cybersec is also hit and miss, depending on what provider you choose, verification systems and all that jazz. Also, running locally allows you 100% data privacy, in any situation and for whatever usecase you might have. ~100k for hardware for a small team of devs to code locally is not that expensive in the grand scheme of things. Lastly, local models allow for training / finetuning on your own data and processes. $/tok is not everything for everyone. Sometimes you can take a hit on value / speed if you get something else that matters for you.
- scotty79 1mo agoI think it's worth waiting a year or two, until Chinese chips (incl RAM) show up the way Chinese LLMs are showing up.