* 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…
However there are other reasons (e.g. privacy) that might make it worth running locally for some people.
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.
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
You can still find a lot of old and completely outdated models on OpenRouter. The providers can scale serving of models up and down as demand arrives, so models don't generally disappear. They're just kept in the mix and the clouds will allocate hardware to it if someone is willing to pay.
In the odd case that it disappears completely, buying the hardware 2 years from now is probably going to be a better deal. That wasn't true if you selectively check the time period before hardware got expensive, but as new hardware comes out we're going to start seeing Strix Halo and old Apple hardware hit the market as people upgrade. It's already happening.
There is a certain personality type that cannot tolerate any uncertainty and must lock everything in right now against all future possibilities. If you fit that description then there's nothing anyone can say to discourage you from buying your own hardware, but for everyone else I do not recommend buying hardware to self-host LLMs just to save money. I self-host and run a lot of tokens through my setup (non-coding work) but I'm not really saving money.
I thought HN banned personal attacks. I'm in this sentence and I don't like it. /s
I just buy the good apple hardware because it's good, and it also happens to run local models. It's not as good for the dollar, don't get me wrong, but I'm not going to develop iOS without a mac, that's even more questionable than buying a strix or whatever.
https://srinagar.nic.in/notice/immediate-suspension-of-virtu...
Phones are randomly searched on the streets and if VPN is found, arrested
https://www.medianama.com/2026/01/223-jammu-kashmir-vpn-ban-...
https://timesofindia.indiatimes.com/india/after-vpn-ban-in-k...
“Out of the 15 individuals identified, five were minors who were counselled and advised in the presence of their guardians, with emphasis on awareness, lawful digital conduct, and the consequences of violating lawful orders,” he added.
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.
[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.
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.
*$1000? $14,000? Who knows but everything in the middle there has been claimed.
So, even though there are more models to run locally that can be useful for the stuff I do, it makes less sense now to do so than it did when I got it. There are more extremely cheap options, now, and it seems likely to continue to get cheaper and better and faster, while my local hardware will always be slow and hot and only gets better via software (which has roughly doubled the speed it can run stuff since I got it, but it seems like there's less room for improvement in software now, and even at twice the speed, it still kinda sucks to use local models interactively especially on the Strix Halo).
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.
OpenRouter prices are somewhat simmilar to Antrhopic/OpenAI API prices. So I conclude that the hardware plus operating margin alone can genuinely produce prices way above what you'd pay if you had a subscription. Of course the primary unkown factor is average token use per subscription. Without that it's all wild speculation.
The models are currently improving much faster than the hardware and this doesn’t seem to have plateaued yet.
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.
Could be a long time till gets released
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.
The object permanence of not having to reinvent the world every time a model gets sunsetted has value.
with open models, there is ecosystem/market of providers, where you can easily switch to provider you like
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.
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.
I would say when this comes to pass, we are already 5 years along?
> 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.
I think this is quite understated. It basically is freedom from a growingly antagonistic relationship between you and some remotely hosted API managed by faceless corporates at the whims of their board, shareholders and governments.. It really is such a mental burden to need to constantly manage this relationship (watermarks, silent downgrades, random false refusals, downtimes, model sunsets, changing ToS's, fucking ads). These companies will need to squeeze you for every cent that they can before open-weight models are simply good enough for the valuable tasks we can throw at them.
To have your own hardware is to no longer have this mental burden.
That said, when I bought my pair of Sparks, the best model I could run on it was GPT OSS 120B. That has an AA score of 24.
Today, the best model I can run on them is GLM 5.3 Flash at Q4, AA score 57. Just still out on GLM 5.3 mixed quant.
So from that perspective, they are many times better value than when I bought them, and will likely continue to increase in value.
That AA score is for the original model only
The surprising thing for me is how much work you will need to cool the banks if you’re near your memory ceiling. My memory starts soft throttling at about 74C (dies may be hotter, that’s the bank temp) and will turn down speed to try to stay below 80.
Happy to send my llama.cpp config settings if you want it.
Temp wise, no throttling, surprisingly cool.
That said, I am guessing my problem is not enough RAM - but this poor consumer platform struggles to do memory training with 128 GiB as it is.
Now I surely regret not having gotten Threadripper and 256 GiB of RAM in the before-times.
For what it's worth, all of my hardware was used; I think, all-in, I'm probably at around 3k-4k USD? Not cheap, but also not the worst for something relatively versatile.
Which is completely insane for a ten year old configuration.
I'm happy with all of the competition in the APIs on openrouter... I watch that like I used to watch the stock markets, lol. It's great fun.
Does inference make full use of the memory bandwidth in a NUMA system?
Using an example of llama-server on a 256GB (each CPU is attached to 128GB) system running qwen 3.8-flash-next Q8, which takes up about 188GB with the model and context, it's not that the inference engine 'knows' about NUMA, but if you use --load-mode mlock to load the whole thing into memory at once at the time llama-server launches, the kernel will distribute it relatively evenly across the memory connected to both CPUs.
Though I appreciate how good it is at "solid" grunt work and at that price (in fact I am paying the grandfathered subscription price; mostly).
I am planning to let go for my Claude AI subscription which I now use only for "planning" and maybe use that via Open Router as PAYG (at to try how it ends up). But god glm is bad at "talking" and "responding" anything prose. Not only quality but it's almost impossible to tune it and make it let go of its habits and biases and enthusiasms which often result in too many too and fro.
So I sometimes wonder at what point that starts becoming the cost and mental hassle. Maybe it's not there for me yet.
But the cost difference between api and self hosted is so incredibly large now it's almost impossible to ignore the fact self hosting is a terrible deal. I'm waiting things out until the dust settles on what the required specs are and consumer hardware gets cheaper/more capable.