this post was submitted on 16 Jun 2026
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Their investors better hope that's not their plan. It's a terrible business plan, local open AIs will crush any attempt at profit. Local open AIs would already be crushing profits if business were run sensibly. You don't have to train a whole model from scratch. You can just give a pre-trained model your toolset and prompts (things you'd've had to make anyway) and call it a day.
Law offices, hospitals, and insurance companies are not going to set up their own servers, localize an AI, and upload all the custom data sets they need into a pre trained locally hosted model. Everyone could easily host their own cloud backup system as well, but no one does it.
But yes. That's there plan. It's been done multiple times before amongst things. It's how busses eliminated trolleys, how ride share beat out taxis, and how Walmart sells the cheapest Coke. Amazon does it as well. It's a variation of predatory pricing. It's common as hell. Supposed to be illegal, but seldom does anyone get in trouble for it. Crooked government that works for the wealthy n all.
Sure, but they're not hiring Open AI to do custom work. They're hiring some third party who well might use their own servers. Even if they are hiring Open AI there will be a thousand competitors in no time. There's no meaningful cost barrier to set up a local AI. Sure scaling costs a little, but really not much. It's a foolish investment that only works if people are incompetent... okay so might work a little, but it's still stupid.