this post was submitted on 30 Oct 2026
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LocalLLaMA

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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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[–] SupraMario@lemmy.world 13 points 2 weeks ago (2 children)

This is more like housing

He's saying, rent from me because you don't really need a house, you should be happy with a single apartment that I have crammed 10 people into and rent is $5k a month. Be happy I give you electric and water access.

[–] FjordDan@lemmy.zip 10 points 2 weeks ago

Unless you share a bed with 2 other people working different shifts, your bed is unused 16 hours a day. Personal beds are such a waste!

[–] GeirGrusom@lemmy.world 5 points 2 weeks ago (2 children)

They also have 200 billion dollars of unused GPUs sitting in warehouses so who the fuck is he talking about when he claims that it's bad resource allocation. It's scarce because the tech industry artificially made it scarce. Why the fuck there's no anti trust campaigns agains the tech industry is beyond me.

[–] SupraMario@lemmy.world 3 points 2 weeks ago (1 children)

What I find hilarious about all this clippy 2.0 shit, is that tech doesn't stay relevant for long. It's not like a car or house that can be used for 20 years like a car or 100+ for a house or longer...it becomes obsolete pretty quickly. Just go on eBay and you will see a fuck ton of smx2 and smx3 gpus for pennies of what they originally cost these idiots.

[–] GeirGrusom@lemmy.world 3 points 2 weeks ago (1 children)

Yeah, they say on the spreadsheets that these cards have a lifetime of 5-6 years when in reality it's between 2 and 3.

[–] SupraMario@lemmy.world 4 points 2 weeks ago

5-6 is laughable for these guys... you're %100 correct. 5-6 years is for companies running their own stuff and even then, if you're hosting for clients that have any security measures in place, they will not be happy with you running aging and potentially EOL/S equipment.

[–] eleitl@lemmy.zip 1 points 2 weeks ago

I bet they're going to shred these unused GPUs after the bubble pops, to make sure these won't appear on the free market.