this post was submitted on 06 Sep 2026
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This is called burying the lede.
If Microsoft knows this cloud-based AI thing is a bust and people will be moving to local models that are not controlled by Microsoft or OpenAI or Anthropic, then it's only a few months before Satya tells his investors buddies and the bubble pops.
I find this unlikely... IMO I think they are hedging in both directions.
Personally I like the idea of local AI. open source models that you an control, decide, and use smartly, sort your things etc... and not pay an absurd cost or link up.
Personally I think MS is actually betting on the opposite. IE they had a prototype windows that was basically just an AI prompt, no start menu etc... and applications just "streamed".
IMO I think that's more of the goal, use the data center buildout to drive up hardware prices, until people cannot afford a basic PC. Sell thin clients... then sell us "access" to compute in a form where we own nothing, but pay by the processes used etc...
I'm pretty sure local models still induce pyschosis and hallucinate. Maybe the cat's out of the bag, but they still suck.
They absolutely do suck, but I can see some practical uses for them. IE I can see LLM's as useful in localized specialized uses. for me I'd really like basically LLM as a like calendar, scheduling kind of thing, also say translating home assistant commands through a voice assistant to make it figure out actual intent etc..., nothing super mission critical, but also mostly things I wouldn't want any 3rd party service that could change the rules for me, share them to others etc...