Two statements can be true and he stated one of them. Sam is not wrong.
1. Local inference can cause a large under-utilization of resources from users that do not run local inference hardware at capacity over the hardwares lifespan. This is under-utilization and under-utilization is not optimal from an economics perspective.
2. The concentration of inference hardware to singular providers can aggregate power to single systems or organizations, and their incentives may be at odds with individual users.
The same power dynamic and economics struggle has existed nearly everywhere for all of history. For example, if you want to decide to own or rent a piece of heavy construction machinery for business, you will find a long list of do-not's on the rental contractual terms, but you are more than welcome to buy your own and operate your own machinery at several times the price for the hours used and use it however you want.
1. Local inference can cause a large under-utilization of resources from users that do not run local inference hardware at capacity over the hardwares lifespan. This is under-utilization and under-utilization is not optimal from an economics perspective.
2. The concentration of inference hardware to singular providers can aggregate power to single systems or organizations, and their incentives may be at odds with individual users.
The same power dynamic and economics struggle has existed nearly everywhere for all of history. For example, if you want to decide to own or rent a piece of heavy construction machinery for business, you will find a long list of do-not's on the rental contractual terms, but you are more than welcome to buy your own and operate your own machinery at several times the price for the hours used and use it however you want.