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The AI lifestyle subsidy is going to end

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Re: The AI lifestyle subsidy is going to end

#31

Post by [deleted] »

jasonjmcghee wrote: post #23
egypturnash wrote: post #9

Earlier quoted context omitted.

You have a very curious definition of "local" if that includes "cloud-based providers".

> the models I do use remain static and predictable Some people overload "local" a bit to mean you are hosting the model - whether it's on your computer, on your rack, or on your hetzner instance etc. But I think parent is referring to the open/static aspect of the models. If it's hosted by a generic model provider that is serving many users in parallel to reduce the end cost to the user, it's also theoretically a st…

[deleted]

Re: The AI lifestyle subsidy is going to end

#32

Post by some_random »

bryanlarsen wrote: post #26
some_random wrote: post #20

Earlier quoted context omitted.

Is that really the bet? Is it not enough for a $20 per month subscription to be sustainable with the free level being a trial for that subscription?

Sure, professionals will pay $20/month, but I highly doubt that many consumers ever will.

I think it depends entirely on what value can be provided, I'm not sure if that's been proven out yet. To be clear, I definitely think that we're most likely to see an ad supported slop generator as the model most people most commonly engage in but I don't think that right now it's what the industry thinks will be the case.

Re: The AI lifestyle subsidy is going to end

#33

Post by throwanem »

waynecochran wrote: post #24
egypturnash wrote: post #9

Earlier quoted context omitted.

You have a very curious definition of "local" if that includes "cloud-based providers".

I assume this means, for example, using their own AWS / EC2 instances to store and process -- not "local" geographically, but "local" personally.

It's a two-year-old Mac Studio in the other room. Where are you coming by this novel sense of 'local?'

Re: The AI lifestyle subsidy is going to end

#34

Post by pier25 »

In 2024 OpenAI generated some $3.5B in revenue and still lost like $5B. It means they spent something like $8.5B to run this thing [1].

They would have lost less money if they had been selling dollars at 50 cents.

[1] https://www.cnbc.com/2024/09/27/openai-sees-5-billion-loss-t...

Re: The AI lifestyle subsidy is going to end

#35

Post by politelemon »

haolez wrote: post #3
throwanem wrote: post #2

This has been coming for a long time and it is why I use local models only. I'm willing to give up capabilities in exchange for being able to trust that whatever biases may exist in the models I do use remain static and predictable.

How do you do it? Do you host on your hardware or do you use cloud-based providers for open models?

Locally it's pretty simple to run models on GPUs, even low powered ones. Have a look at gpt4all as a starting point but there are plenty of offerings in this space.

Re: The AI lifestyle subsidy is going to end

#36

Post by SoftTalker »

LarsDu88 wrote: post #8

The subsidy is blatantly obvious when you compare the cost of self-hosting versus subscription, and the subscription is dramatically dramatically cheaper. The difference between Blue Apron and many AI tools is that the value add does exist. You can cut meal prep from your life, but by 2030, cutting whatever agentic code copilot exists by that point will be like cutting off your fingers for many workers and businesses…

I'm glad I'll be retired by then. I plan to cancel my ISP at that point.

Re: The AI lifestyle subsidy is going to end

#37

Post by throwanem »

unshavedyak wrote: post #10
throwanem wrote: post #2

This has been coming for a long time and it is why I use local models only. I'm willing to give up capabilities in exchange for being able to trust that whatever biases may exist in the models I do use remain static and predictable.

I agree with this, though i'm still using Claude atm. I figure if we're aware of the downsides you pointed at then we can skip the fast changing landscape of self hosting. It keeps getting cheaper and cheaper to self host, so i'm not sure at what point it makes sense to invest. For me the switching point will probably be when they (AI companies) start the big rug pull. By then my hope is self hosting will be cheaper,…

Better not to form the habit, I thought. I'm sure I miss out on some things that way, but that is the lesser risk.

I do use the Gemini assistant that came with this Android, in the same cases and with the same caveats with which I use Siri's fallback web search. As a synthesist of web search results, an LLM isn't half bad, when it doesn't come as a surprise to be hearing from one at least.

Re: The AI lifestyle subsidy is going to end

#38

Post by yzjumper »

atentaten wrote: post #6
throwanem wrote: post #2

This has been coming for a long time and it is why I use local models only. I'm willing to give up capabilities in exchange for being able to trust that whatever biases may exist in the models I do use remain static and predictable.

What does your hardware setup look like?

Not the user above, but I am using the iOS app PrivateLLM when I need offline access or use uncensored models. I use kappa-3-phi-abliterated, models under 6B usually work without crashing. Using Ollama on my Mac Mini 24GB base processor (M4 not M4 pro), I am able to run 7B models. On the mac I am able to set up API access.

Funny enough the mac has almost the same processor as my iPhone 16 Pro, so its just a RAM constraint, and of course PrivateLLM does not let you host an API.

Re: The AI lifestyle subsidy is going to end

#40

Post by GaggiX »

barrenko wrote: post #5

Future ain't what it used to be. The web is dead (worse actually, it's a putrid rotting zombie, destroying our children's lives and ours), but the internet will survive.

>worse actually, it's a putrid rotting zombie, destroying our children's lives and ours

What are you talking about, is this a rant against TikTok or other socials?

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