Local LLMs are no longer a hobbyist experiment and the cloud AI market should be paying attention
New GPU hardware from NVIDIA and AMD, combined with maturing quantization techniques, has pushed local LLM setups to within 3-5% of flagship cloud model benchmarks. The $6,000-plus investment is increasingly justified for privacy-sensitive enterprise use cases, particularly as EU AI Act enforcement tightens. Cloud AI providers face a genuine long-term threat to their recurring revenue models if the capability gap keeps narrowing at its current pace.