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.
> I have spent ~$50K on local AI hardware. The market value of that hardware is about ~$80K right now.
That's easy because no matter what IT hardware you bought, it's worth more now than it was two years ago. That's something that's unprecedented, never happened before, and as soon as we get flood gates open on ram manufacturing OR when the AI bubble pops, all IT HW deprecation norms will return and making a profit by buying something IT will vanish.
I had a GPU server four years ago. Had I not sold it like three years ago with 2x price I bought it, it would be likely something like 5x the price nowadays.
I really really miss filling my home rack with old enterprise stuff. All I want is this hardware winter to end.