alt Hacker NewsYou aren't going to get nearly as much token usage locally from DGX Sparks or even M5 Ultra (though it might be close, unsure would need to get my mittens on it to clarify).
You will get around 2-4 concurrent streams of aggregate tokens at best for such a model and around 0.5B output tokens per month assuming you use loops and run it when you are sleeping. That's 500 (per mill) * 0.5$ = 250$ only at most.
Then there is maintanence and efficiency costs due to electricity usage and such, any down time, etc.
You will be lucky if you can squeeze more than 200$ of value out of it in a month.
I don't think people should buy local hardware for money reasons, by the time you will pay off a 10K USD machine, 2-3K USD machine will catch up and beat it by a significant margin.
Unless your expectation is that we will be in hardware winter for the next 10+ years. At 200$ per month it will take around 200 * 50 = 10k, that is, 50 months, so around 4-5 years.
Again assuming you are making the most of your hardware somehow, very hard to do in practice.
I don't recommend people to use compute as investment or payoff thing, but if you have the money to burn and can afford it why not, maybe with some software optimizations it will be cheaper but then again Z.ai is currently offering 50% discount and providers will offer cheaper rates for sure.
But either way you will never be able to burn more than 200$ worth of token on a cheap hardware device, because inference becomes more profitable the more you scale it up, you have separate prefill and decode engines/systems, and a lot of nuance, but assume for every 10x increase in infra you increase margins by 5-10%.
So from 10K to 100K to 1M to 10M to 100M.. I don't think this curve continues beyond 100M but I have no idea about that scale unless some AI lab is interested in hiring me lol.
So a 100M infra will have ~30% better margins than you at 10K, then there is software optimizations but that's cheap enough, though some of it is only viable at scale.
Either way assume 10K is the price of privacy if you really want to buy it. Don't worry about making the most out of the usage, you will always be in a net loss but I would assume for you 10K doesn't matter.
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yeah i mostly agree, especially compared to subsidized subscription cost.
But for a heavy user who has enough work to be done so that the box runs almost 24/7 at say 50tok/sec, the math gets interesting against API prices.
And it can be interesting compared to subscription in the sense that you don't have the quota anymore. That means there's probably a lot of things you're not doing because of the quotas that you could do now.
It depends heavily on the tok/sec obviously and the very best solution financially remains subscriptions. But the idea remains entertaining and not that disconnected from reality
I generally agree — go local for the hobby/tinkering, privacy, and control (ie not getting refused by an AI to defend and secure your own network and codebase; as HuggingFace has seen).
But whether you make a loss or not depends on how hardware prices and resell values go though.
I have spent ~$50K on local AI hardware. The market value of that hardware is about ~$80K right now.
So the maths is working out for me so far. I see it as a call option on compute.