"As AI takes off, the whole cycle promises to repeat itself again, and while AI might seem relatively cheap now, it might not always be so. Foundational AI model-as-a-service companies charge for insights by the token, and they're doing it at a loss. The profits will have to come eventually, whether that's direct from your pocket, or from your data, you might be interested in other ways to get the benefits of AI without being beholden to a corporation."
"There's a cultural shift driving local LLM adoption, and part of it has to do with distrust of big tech. Pew Research Center found 81 percent of Americans fret that AI companies will misuse their data. The Federal Trade Commission felt it necessary to warn AI model companies to honor their commitments around customer data. That was before the present administration came to power and changed the regulatory landscape."
"OpenAI has said it will forget your chats if you ask it to, but that doesn't mean it purges that data. In fact, it can't. A court ordered the company to retain its chat logs as part of the case it's currently fighting against the New York Times and other publications. Even those that start with a focus on ethics and privacy will bend to market dynamics."
After decades of cloud computing priced by storage and bandwidth, AI is introducing a new metered model priced by tokens, with foundational model services selling inference at a loss today. Providers will need to recoup costs through direct charges or by leveraging user data, prompting alternatives for obtaining AI without corporate dependence. Advances in hardware and software make running models locally increasingly viable. Widespread distrust of big tech and regulatory scrutiny drive local adoption. Companies have extended data retention and begun training on user inputs, often under opt-out rules, intensifying privacy and sovereignty concerns and pushing regional alternatives.
Read at Theregister
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