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Sam Altman: "Local inference is a terrible allocation of scarce resources" (twitee.co)
submitted 2 days ago by to c/localllama@sh.itjust.works
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Sam Altman:

A lot of people want local inference, and somehow they assume that the problem is solved now because we have open-source models, we're going to be able to run them on our computers, and so we're not going to need all the stuff in the data center.

But from a global allocation perspective, actually it's quite terrible to have everybody, like, have a bunch of the world's limited supply of DRAM sitting in their own computer and being used five percent of the time.

Like you want maximum utilisation in the cloud if you're trying to deal with this very supply-constrained environment,

And somehow many people's intuition is the opposite of that

TL;DR Guy selling product: "Here's why owning your own product instead of renting it from me is a terrible idea"

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[–] 3 points 1 day ago

You can’t argue with the correctness of his statement. You need other arguments. These arguments exist.

Here's a counterargument: The resources wouldn't be scarce if his company didn't buy all of it for exetremely questionable gain. (Three years into the bubble, and AI compute is still being sold at a subsidized rate. You'd think if enough genuine demand existed to justify the buildout, you'd have to pay dearly for any AI use.

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