My take is that B2C AI applications are kind of structurally limited by how hard it is to build personalized context. The idea of capable local models could be a huge unlock here if they are able to do the bottom-up context collection research / tagging / etc. at scale.
Is it really local models that unlock this? Surely stateless model APIs would yield the same benefits? I get that local can be “cheaper” depending on usage, but we’ve been renting storage and compute from clouds at a premium for ages..
Using API to analyze even a subset of this would've been painful imo.