> It remains to be seen who is actually willing to pay for it at the prices required to recoup those insane investments.
Everyone. Open models are going to keep prices down. A lot of current models are more than usable. Self-hosting would have been an option if hardware prices get back to sane values.
The insane investments have to do with insane over-valuations, VCs involved and hence media spam on it. Chinese labs for example make do with 1% of the valuation and 1% of the resources.
Prices must raise a lot to make self hosting mainstream or at least fairly popular.
Yesterday a coworker posted on a customer's Slack the specs of a box he is planning to buy to run local models. It's about 5k Euro. I am paying 18 Euro per month for Claude Pro and I'm going through a migration (almost a total rewrite) of a web app from Vue 2 / Vuetify 2 / Vuex to Vue 3 / Vuetify 4 / Pinia. I never hit the 6 hours limit. I could consider running an equivalent model on a 500 Euro machine (about 2 years of Claude Pro) but 5k is 20 years and that box will be obsolete or will have failed beyond repair (no spares) much earlier than that.