Not everyone subscribes to the "cloud compute is more important than everything else" outlook, but everyone is affected by it nonetheless.
Given that he was in a fluffy interview at the time, he's not going to say that OpenAI and Anthropic would die, but we all know that -unless the "Pacing The Frontier" garbage succeeds in its goal of creating law and regulations that massively obstruct LLM manufacturers who aren't the four or five currently-largest ones in the US- that's how it'd turn out. Once OpenAI and Anthropic are dead, the VC money pouring into the LLM manufacturing and services industries evaporates, and all that demand for high-speed VRAM vanishes with it.
So, no, switching to locally-hosted software will reduce RAM prices... just not immediately.
It's like a highrise developer saying "people think our buildings take up a lot of land, but actually houses are much worse from a land use perspective". Which is objectively true, and yet does not mean the developer thinks the entire world should be turned into houses, or even that they dislike houses!
isn't communal living the most efficient thing resource-wise though?
But saying people shouldn’t want something that was abundant and you made scarce is an asshole thing to say.