IMHO it doesn't make sense, financially and resource wise to run local, given the 5 figure upfront costs to get an LLM running slower than I can get for 20 USD/m.
If I'm running a business and have some number of employees to make use of it, and confidentiality is worth something, sure, but am I really going to rely on anything less then the frontier models for automating critical tasks? Or roll my own on prem IT to support it when Amazon Bedrock will do it for me?
It starts making a lot of sense if you can run the AI workloads overnight on leaner infrastructure rather than insist on real-time response.
That’s probably true only as long as subscription prices are kept artificially low. Once the $20 becomes $200 (or the fast-mode inference quotas for cheap subs become unusably small), the equation may change.