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this post was submitted on 25 Jul 2026
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I’d argue the models and software are the real long term assets. GPUs depreciate like any other hardware, but a better training pipeline, inference stack, proprietary data, and a model with millions of paying users can survive multiple hardware generations. The chips are replaceable. The ecosystem and customer relationships are much harder to replicate.
Yeah, there’s a lot of innovation going on to run powerful models on modest hardware and the state of the art for running local models is changing all the time. If the trend continues, models hosted in a data center will only be for niche use cases.