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It would be super interesting and useful for the world to have open source algorithms, so you can choose what best suits you.

I think Bluesky's ATP can support that, not sure about ActivityPub, but it probably can too.

Don't these algorithms use significant compute and lots of data (not just from you, from other people, too)?

It seems like it'd be difficult to just run up an algorithm on a local server, though I'm not sure if that's where you're suggesting