Cloud AI only works as long as the lights are on. The public sees AI as a feature and not a product, a ‘freebie’ feature of their phone.

Google might have the income diversity to burn money on LLMs but the likes of OpenAI do not. Deepseek spooked investment because VCs were waking up to the fact they will never get a return.

AI is currently in its ‘big bertha’ stage where it needs a warehouse-sized computer. But these models will become ever more distilled until on-device LLMs are the future because the centralised model will go out of business.