It's almost never a drop-in replacement, and having to check and adjust integrations and workflows with new models gets old fast. My task was perfectly solved by the old model, I don't need a newer, "better" one - especially at higher prices ("more cost-effective" my foot). Local models lets one choose a model and freeze the downstream integrations forever, without being forced on the 6/8-month upgrade treadmill by aggressively short, scarcity-driven hosted model-deprecation schedules.
The frontier labs have very high prices for inference. The prices are actually going down, not up.
Others running open models in the cloud is a nice third alternative, but not a solution for those that need frontier models, which I believe continue to need training as well as inference. These are currently heavily subsidized and hardware constrained several years out.
Don't get me wrong: I hope you are right, and I am generally optimistic about the future of AI.
But do you really think, in a world filled with examples of big software companies repeatedly taking away or hamstringing capabilities we've taken for granted, that you can just count on a big tech company hosting cheap inference on incredibly powerful models forever? Surely we have learned by now that these companies do not exist to provide a public service to us, and the government cannot always be counted on to have the best interests of the citizens in mind.
I mean, how many times have we seen this in just the past decade or two?
- Consistent attempts to pass legislation weakening or banning the use of encryption
- Exorbitant Reddit API pricing (still salty about the death of the amazing Apollo app)
- Google fighting against sideloading on android
- US gov't issuing export control directive to suspend access to Fable/Mythos
- US lawmakers considering ways to regulate adoption of open weight models
- Chinese officials considering restricting overseas access to their most advanced models
I can absolutely see a much more restricted, closed down, and expensive future due to a combination of government regulations (regardless of which nation is doing it) and big companies rug-pulling as the check comes due on all the billions of dollars spent to get here.