This would be a very interesting future. I can imagine Gemma 5 Mini running locally on hardware, or a hard-coded "AI core" like an ALU or media processor that supports particular encoding mechanisms like H.264, AV1, etc. Other than the obvious costs (but Taalas seems to be bringing back the structured ASIC era so costs shouldn't be that low [1]), I'm curious why this isn't getting much attention from larger companies…
I would be shocked if Google isn’t working on this right now. They build their own TPUs, this is an extremely obvious direction from there.
(And there are plenty of interesting co-design questions that only the frontier labs can dabble with; Taalas is stuck working around architectural quirks like “top-8 MoE”, Google can just rework the architecture hyperparameters to whatever gets best results in silico.)