The lesson of the last 50 years of the computer and software marketplace is that free and low-end eventually wins.

- PCs destroyed minicomputers. Mainframes survive, but serving a much tinier portion of the market than they used to.

- PC office productivity software destroyed expensive professional products.

- Windows (low end) and Linux (free) completely destroyed the UNIX marketplace, and again, have taken huge market share from the mainframe world.

Ignoring the huge Chinese open-weight models for a moment:

- The training costs and resource requirements for frontier models are unsustainable. The high price, and social pushback, mean that the American companies producing these models are precarious.

- There are enormous financial incentives for research results allowing for cheaper, less resource-intensive models of high quality.

- Local LLMs on consumer hardware are akin to the PC hobbyist world of the 70s and 80s.

Put all of these trends together, and I think that in 10-15 years, we are going to have consumer PCs (and phones!) running models doing pretty much anything that frontier models can do right now.

Getting back to the Chinese models: They allow for new competition against Anthropic and OpenAI, basically SaaS renting out these very capable AIs much cheaper. That will just accelerate trends.