Actually I think there’s another option.
There’s the scenario where LLMs get more efficient in size, and to get 2026 SOTA performance you will be able to get it from consumer grade laptop.
Sure with a 1000B parameter you will get better performance but the average person will have it write some python script, not derive new physics equations.
So in a sense the demand for LLM intelligence with reach a plateau (arguably we are there today for avg person) so there will not be any subsidy required, because the avg person will not need the latest and greatest.
There’s not the same demand pattern for something like uber.
> There’s the scenario where LLMs get more efficient in size, and to get 2026 SOTA performance you will be able to get it from consumer grade laptop.
But isn't that bad for the AI companies, too? Because then people just run an ~2026 SOTA performance open source model on their laptop for free and not pay any subscription.