> the scaling is coming from capital explosion and it isn’t guaranteed that this will continue scaling
Not at all. Have you tried local AI lately? Qwen 3.8 is legitimately much better than SoTA from 1 year ago (Opus 4.1). You can run it on a consumer GPU.
Qwen Next Flash runs on a DGX spark well and is as good as some things you need datacenter class GPU's to run even today.
Check out Artificial Analysis if you haven't. Sometimes you don't realize how fast these things are moving, but to compare things from a year ago to today is just wild.
They aren't just getting better, they're getting more efficient by many orders of magnitude.