Sam Altman: local inference is a 'terrible allocation' of scarce compute resources

GabGarrett · x · 2026-10-30

Sam Altman pushed back on local inference enthusiasm: many assume open-source models mean no more data centers, but leaving DRAM idle in personal machines used 5% of the time is, from a global allocation view, quite terrible in a supply-constrained environment. Quoter xlr8harder wonders whether lab behavior may have shaped these user preferences.

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