Altman says local inference is 'terrible allocation' of scarce DRAM, community pushes back

TheZachMueller · x · 2026-10-30

Sam Altman argued that running open-source models locally is "a terrible allocation of scarce resources": the world's limited DRAM sits in personal computers used 5% of the time, and in a supply-constrained environment utilization should be maximized in the cloud.

The take immediately drew mockery — critics framed it as "the man who wants to sell you inference telling you to stop doing local inference," noting the conflict of interest and ignoring local models' real benefits like privacy, offline use, and no subscription.

Related event: Altman calls local inference a waste of DRAM, sparks backlash; reveals internal model cracking researchers' hardest problems(37 posts)→

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