Earlier quoted context omitted.
The opposite of that has been happening for 20 years now with cloud compute. It won't happen with AI models either. It's almost ingrained in the American business model now. Outsource everything. Nobody wants to manage a room full of servers when they can spend 2-3x as much and outsource that headache along with the responsibility for it. Same will happen with AI. Whether that means paying Anthropic that premium or p…
> The opposite of that has been happening for 20 years now with cloud compute. It won't happen with AI models either. AI is different. Cloud computing genuinely is cheaper on average. It's better than paying for cisco servers, and at scale, it's cheaper than managed platforms (ala Heroku), and it's a coin toss for when you're in the middle ground and constantly approaching the point of rebuilding poor-man versions of…
For some applications, sure. Availability is a large part of what one is paying for with cloud computing, but it's also something that not every business needs.
If you sacrifice availability and have a pure-compute use case (low durability requirements), on-prem can quickly end up cheaper for far better hardware.