Sam Altman says local inference is a 'terrible allocation' of scarce DRAM in a supply-constrained world

teropa · x · 2026-10-31

In quoted remarks, Sam Altman argued that local inference is "quite terrible" from a global allocation perspective: the world's limited DRAM supply would sit in personal computers used 5% of the time, while the environment is severely supply-constrained. He says compute should be centralized in the cloud for maximum utilization.

Reposter WBBaskerville countered that this amounts to "people want to own their own property but they shouldn't be allowed to," noting there was no deeper layer to the argument.

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