Will local models, for example run on new powerhouse Mac minis, eliminate external token usage?
ASKED BY · Vic Hernandez · SPRINGFIELD, MISSOURI · 13 OCT 2026 · ▶ 00:59:20
Local models will exist but won't eliminate external usage; large frontier models in data centers will remain faster and more cost-effective for most use cases, though enterprises may run local instances for security.
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59:19John Wallace has an opinion on this. John, do you think it's going to go local instead of server? I don't think it's going to eliminate as far as like holistically. But I think that, yeah, running local models is going to be a thing. It's going to also happen in businesses where they're going to run local instances of maybe models that they train and create themselves for specific business purposes.
59:44But it's going to be really hard to compete with the speed and velocity of what these external models and these giant data centers are able to provide. if you want to make the investment and spend twenty thousand dollars and and thunderbolt 5 connect you know four mac studios and run a giant local model that's cool uh but i don't know that you're saving any money versus twenty dollars a month and you're also not getting it you know
1:00:12like that breakneck i'm an isp exactly well it's not it's not it's not um no you know wide area network traffic. But it really just comes down to what are you trying to do? If you're just trying to learn, run local models so you can run it in an enterprise, very valuable. I don't see that value for myself where I'm willing to make that investment and I'm willing to pay $200 a month to
1:00:38have access to all these things and frontier models that other people are creating. But I I think at the end of the day, it all breaks down into what you're doing. If you've already made the investment for something else, maybe it makes sense. You have these machines laying around. They're idle for most of the day. I really think that we're going to get more to the NVIDIA Spark thing.
1:01:01Might be something that is an appliance you have in your house that runs your local LLM. So it ends up replacing the Alexa. So you can get that really smart. and you trust it to connect and only stay local, but when it comes into replacing what you're using to vibe code entire solutions or big, large projects, I think the velocity you get with a large frontier model
1:01:26is going to greatly just expose that for you. Let me get to the finish line as quick as I can. That's what most people want, and it's not about how the sausage is made. That's what vibe coding is kind of getting rid of. I was fascinated by reading something today about that Home Hub model that Apple just announced, was it today or yesterday?
1:01:47And I was thinking, you know, you're eventually, that's going to be attached to your internet source and everything else. I think it'll eventually just make a gigantic spare time bot network out of a gazillion houses. That's going to be running in competition with these big, big, big computer arrays. raise. Let's get to our next question. There's all sorts of weird stuff going on out there.
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