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I don't read that recommendation as prepping. If I were to start an earthworks business I likely would rent heavy equipment at first, but once I get the busines

I don't read that recommendation as prepping. If I were to start an earthworks business I likely would rent heavy equipment at first, but once I get the business going I'd likely begin to buy my own machines. That's not prepping in the sense of having a bunker full of canned beans. Its taking control of a key piece of my business, and likely saving money in the long run.

lantry 24d ago
I don't think that analogy holds up. Owning heavy equipment requires lots of capital, and only makes sense if you keep utilization high. Even large companies will rent or lease equipment if it's something they use infrequently. A large company might own their equipment, but an individual operator probably won't. So it might make sense for some large software companies to own their LLM hardware, but it probably won't make economic sense for individuals. Of course the economics are different in different industries. Trucking owner operators account for ~15% of truckers, but buying a rig is six figures against 5-6 figure income. Buying a mac mini is 4 figures against a 6 figure income, so maybe lots of people will do it even if it's not economically optimal.
- _heimdall 24d ago
  This may be a difference in location or urban vs rural? I live in a more rural area and many people I've hired over the years own their equipment (well, if having a loan on it counts). That goes for tractors obviously, but similarly for wheel loaders, excavators, etc that they use for hired work.
- NewJazz 20d ago
  only makes sense if you keep utilization high The first comment in this chain clearly stated: If I know I can't use a model regularly all month, my enthusiasm is limited.
repparw 24d ago
> once I get the business going I'd likely begin to buy my own machines only when it's cheaper than to continue renting it in your calculations same goes for renting vs buying a house, or anything. the breakeven point here would come when they stop subsidizing the subscriptions, or when local ai gets to run on basically everything, making it ~free (sans electricity)

lantry 24d ago

I don't think that analogy holds up. Owning heavy equipment requires lots of capital, and only makes sense if you keep utilization high. Even large companies will rent or lease equipment if it's something they use infrequently. A large company might own their equipment, but an individual operator probably won't. So it might make sense for some large software companies to own their LLM hardware, but it probably won't make economic sense for individuals. Of course the economics are different in different industries. Trucking owner operators account for ~15% of truckers, but buying a rig is six figures against 5-6 figure income. Buying a mac mini is 4 figures against a 6 figure income, so maybe lots of people will do it even if it's not economically optimal.

_heimdall 24d ago
This may be a difference in location or urban vs rural? I live in a more rural area and many people I've hired over the years own their equipment (well, if having a loan on it counts). That goes for tractors obviously, but similarly for wheel loaders, excavators, etc that they use for hired work.
NewJazz 20d ago
only makes sense if you keep utilization high The first comment in this chain clearly stated: If I know I can't use a model regularly all month, my enthusiasm is limited.

repparw 24d ago

> once I get the business going I'd likely begin to buy my own machines only when it's cheaper than to continue renting it in your calculations same goes for renting vs buying a house, or anything. the breakeven point here would come when they stop subsidizing the subscriptions, or when local ai gets to run on basically everything, making it ~free (sans electricity)