I'm sure cloud models will always have a slight edge but most tasks, most of the time, won't need that few extra percentage points of performance.
Llama 3.1 8B baked into an ASIC. Expect 1/10th the power requirements, and other savings.
This is one of the reasons I don't believe the "it'll never be profitable" narrative. Just stop training when you think your model's "good enough" and move to custom silicon.
Yes and no. I bought most of the hardware before the rampocalypse. It is just an AM4 chip on a nothing motherboard. Even today, 16GB 5060s are maybe 500 each. 64GB of DDR4 is another 500$. Add a power supply and pci risers and the basic parts could be purchased today for around 3000$... call it 4000$ all-in including my labor to get everything connected and talking to each other.
4000$ is money but is also almost nothing in the world of commercial IT purchases.