Earlier quoted context omitted.
The key word there is 'currently'.
Economies of scale are a fact of nature and aren’t going to be subverted in the future by even the most advanced local models
For example (and relevant to AI) I can generate electricity on my roof at $0.20-25/kWh, batteries included. In California the electric utility can’t offer it cheaper than $0.30-0.50/kWh. Therefore at scale, electricity is actually more expensive.
There are many such examples.