I read an interesting article from Michael Power on SubStack where he talked about running AI agents locally on for instance Apple Mac mini computers using an open source AI model. He claims it's much cheaper to run local AI agents versus running them in the cloud on one of the big AI agent providers, and local AI agents can do 80 - 100% of what a cloud based AI agent can do.
For individuals it's still easier to just use a big cloud based AI agents with a monthly fee, but anything from a small business and up can afford a powerful computer running a local AI agent with somebody trained to set it up.
Just this morning I read that Nvidia is partnering with Microsoft and other computer makers to add chips to home PC's that can easily run local AI agents.
What I see coming is that chip companies continue to do really well, but all these data centers that are being built right now, I'm not sure about those.
Think about it. Any decent size company doesn't want to use cloud based AI agents for security and privacy reasons. Universities are training lots of students who know about AI. If I ran a company, I would hire one or more of those students and set up my private AI agent. If I wanted to run a business, I would lease those students as contractors to install local AI agents in other companies.
On top of that, people will start buying PC's with a local AI agent built in, free for their use.
Data centers will be in trouble, but the big AI agent providers will start to struggle as well unless they adjust their business.
