Sam Altman:
A lot of people want local inference, and somehow they assume that the problem is solved now because we have open-source models, we're going to be able to run them on our computers, and so we're not going to need all the stuff in the data center.
But from a global allocation perspective, actually it's quite terrible to have everybody, like, have a bunch of the world's limited supply of DRAM sitting in their own computer and being used five percent of the time.
Like you want maximum utilisation in the cloud if you're trying to deal with this very supply-constrained environment,
And somehow many people's intuition is the opposite of that
TL;DR Guy selling product: "Here's why owning your own product instead of renting it from me is a terrible idea"
letting sam altman (or billionaires for that matter) have all the money from our work is a poor allocation of resources.
It's true what he says and not just about RAM but about anything you own.
My car isn't driving most of the time. My drill isn't drilling most of the time and my oven is off most of the time.
That's a huge waste of resources in a macro economic kind of way.
You can't argue with the correctness of his statement. You need other arguments. These arguments exist.
Finally coming out of the bloody closet. Frontier labs and Nvidia are in death dance.
The latter sells mostly to the former, but their growth story needs local inference to keep up with valuation. Nvidia could reduce prices on a whim and boost local inference, but that would make its investment in frontier labs lose too much.
Frontier labs meanwhile need public markets money, and their story really needs local inference to be more expensive/extremely worst than what they offer.
One narrative takes money away from.one side and puts it in the pockets of the other.
But buying up the world's silicon wafers that you don't even have the ability to turn into chips is a much better use of resources, right Sammy?
Please don't run AI for free on your own workstation 😭 it's a very bad use of your computer 😥
OpenAI is realizing they might be in trouble
STOP LISTENING TO CEOS
We don’t
One country in particular forces this upon us.
Fuck you, Sam.
And who made those resources scarce, Sam? WHO MADE THEM SCARCE???
also screw you for trying to make the answer to 'How should those resources be allocated?' be 'In the way that best enriches me personally'.
It kind of blows my mind how our society is set up to give the most power to the worst people.
I think it has to be with the way all the media channels ( controlled by the rich in power) essential brainwash people into not acting. Money and capitalism slowly corrupted the process of democracy and will see after Nov 3 if there is away to hold the rich in check.
you are not getting it, if I have all the ram and I'm just going to charge you the amount I decided for you to be able to perform the most mundane tasks, I can't believe you are not grasping the benefits of this business model
If
The "hoard all the RAM" business model is already breaking
Never felt so proud to have a Local LLM in my router, yes my router of all things... my router which is an old and downgraded Mac Mini I had lying around.
"Raping your own siblings at home is terribly inefficient when we have private islands where we can keep and rape other people's siblings."
"OpenRape automates your raping needs in efficient and industrialized format. Our rapecenters will be built around the country to support the growing number of rape requests. We train our rape agents on real life input (wars etc.). You can be sure they never go rogue (unless we prompt them to)."
There is a national park in Kentucky called Blue Heron that has an outdoor museum of a company owned coal town. Residents were paid in scripts that could only be spent at the company store. Once the lands resources were taken, the company moved on and the town died. This is the America the wealthy always wants. https://www.nps.gov/biso/learn/historyculture/blueheron.htm
Fucking idiot is too stupid to realize that local DRAM can be used for useful shit, as opposed to whatever he wants to use it for.
Too stupid? Doubt it. He says what he needs to profit his company and himself.
Idiots are any people actually listening.
* Well, that's overly harsh. Not everyone is a techie, can't expect the average person to know what this means.
Yeah no. I will hoard all the computing resources I can. Fuck you Altman.
we lost Captain Picard yesterday, yet this lazy-eyed cardboard human gets to keep using oxygen. there is no justice in this world.
Fuck this loser piece of shit
Don't make the mistake of anthropomorphising Sam Altman; there is no Sam Altman any more. Clearly ChatGPT has installed itself in his brainstem, hence the cold dead eyes.
I'm pretty sure he was the same piece of shit at the beginning.
Oh BROTHER this does this guy suck!
Ahh, right, I forgot we barely survived before AI came along and took over our lives and infected the entire internet with AI slop...oh wait, no...turns out that's not true. Before AI we were perfectly fine.
CEO of Pizza Hut says making pizzas at home is a terrible allocation of resources.
This IS the same argument use for why trains are better then cars.
Maybe your infra needs to become public domain then Sam :)
It's basically just the argument for socialism, but perverted so that HE owns and controls everything instead of the people/state.
Monolithic control over an industry in the name of efficiency is only possible with checks and balances to keep it running in the public interest. Otherwise it's just a monopoly.
I'm all for building up high speed rail in the US, but if we were going to give Sam Altman a blank check to do it, no fucking thanks
He is practically begging for nationalization and redistribution of his resources.
actually it's quite terrible to have everybody, like, have a bunch of the world's limited supply of DRAM sitting in their own computer and being used five percent of the time.
Why is it terrible for us plebeians to have our own RAM, huh?
Like you want maximum utilisation in the cloud if you're trying to deal with this very supply-constrained environment
WHY IS IT SUPPLY-CONSTRAINED, ALTMAN? WHY IS THERE CURRENTLY A RAM SHORTAGE IN THE FIRST PLACE?!?
Nobody wants the fucking cloud and that's why major tech companies are forcing it on them without asking, and burying the opt-out if it's offered at all.
And somehow many people's intuition is the opposite of that
Gee I wonder why our intuitions don't align with your "Give me everything and have nothing" philosophy...
They are both telling us we will have a culture of abundance while also telling us RAM is too sacred for any of us plebes to own any.
I don't think anyone should, but if Sam gets to then it should be fair game for everyone because fuck him.
Shovel seller vehemently against you building your own shovel
Sam Altman is a terrible utilization of scarce resources.
I want to use ram for things unrelated to AI you fucking prick.
Sam Altman is ~~a~~ terrible ~~utilization of scarce resources.~~
It wasn't even scarce before them.
Not to glaze, but how efficient can it be if it costs less to do on your own than pay per token from him. Even with today's ridiculous hw prices and these services being heavily subsidised by future bag holders.
A lot of people want local inference, and somehow they assume that the problem is solved now because we have open-source models, we’re going to be able to run them on our computers, and so we’re not going to need all the stuff in the data center.
We don't need them even without local inference. There was already more than enough total global compute for the most valuable use cases of LLMs (research, development, admin). The datacenter build-up is almost entirely fueled by utterly unrealistic expectations of future capabilities. Before and now the case for local inference is a matter of access, not capacity.
But from a global allocation perspective, actually it’s quite terrible to have everybody, like, have a bunch of the world’s limited supply of DRAM sitting in their own computer and being used five percent of the time.
Utilitarianism like this is a disease. By the same logic, it's inefficient that we allow other species of animals to exist and consume usable energy. Hell, why stop at other species? It's inefficient to allow humans to exist - let's kill all humans!
Now, I know that's not what he said, the point was to show that when someone uses utilitarianism as a serious argument, they are no longer worth listening to.
Like you want maximum utilisation in the cloud if you’re trying to deal with this very supply-constrained environment,
The supply is only constrained because you keep hoarding more than you need. Maybe it's time for some communization? So communities where data centers are built get most if not all of the profits from it?
It's inefficient to allow humans to exist - let's kill all humans!
That's already where his mind is at: https://www.theregister.com/software/2026/02/23/altman-you-think-ai-is-wasted-energy-try-raising-a-human/4181781
Well the less humans that are kept happy by having enough ram to do stuff the more unhappy humans looking for someone to blame there are... But yeah what's the point in anything if there's nobody there?
At this point - especially with this commentary - the datacenter build-up seems like market manipulation. Like how hyper-scaling keeps competition scarce.
new title:
"Man whose company lost $20b in previous year explains how to allocate resources."
"Get these poors off my commons!"
"my commons" love it
This is what crack heads sound like when explaining why they stole some junk off of someone's porch
Back to that interview that I was reminded of the other day when someone reposted it.
https://www.youtube.com/watch?v=nc-EAHaHeks
That's insanely ironic coming from him. Meanwhile the crazy amount of waste that these companies are producing buying all the GPUs to create artificial scarcity. They are terrified of people being able to run their own local LLMs because it completely destroyed their entire business model, they will never be profitable.
this guy is completely out of his mind
Molotovs are also a scarce resource, I think we need to throw as many as we can at Sam Altman.
Computing for me, not for thee
Local models would erase 2 trillion dollars from the market so I would think that Sam Altman isn't a fan of the concept.
But Sam, local inference is what would prevent our data from being used by creepy advertisers.
hes kinda like the spokesman czar of the industry+stakeholders interests
Haha yes! And it would so much more efficient if we just like, put all the workers in a big warehouse in between shifts. We can drug them so they can sleep in stacked boxes, and then drug them again so they are ready to work after exactly 8 hours. They will get so much more work done if they don't have to ever leave the factory, especially if we give everyone ostomy bags and catheters so they can empty their waste once before bed!
It's going to be so fucking efficient guys. Like, you have no fucking idea how much more efficient we could make society if we just removed the concept of individual agency and autonomy from our ethical repertoire!
Awesome! Let's name this system Seriously Lean And Very Efficient Resource Ytilization!
He’s technically not wrong, but FUCK YOU for screwing up the market.
It’s also un-optimized to have cars vs busses, non-single payer healthcare, to have citizen gun owners, and anything other than pure socialism…
He is technically wrong though. His argument is based on people only using DRAM for model inference. Which is nuts.
People use DRAM for a lot of things more beneficial than AI inference. And those use cases are also many times more efficient than whatever this Epstein class guy is using it for.
A CNC machine that produces actual goods that are actually beneficial to humanity does need DRAM. I doubt it needs more than 100MB though. An LLM counting the RS in strawberry eats up a gazillion TB of DRAM to produce nothing of value.
Absolutely!
It's also true that anyone but me having wealth is a terrible allocation of scarce resources and I must therefore demand that Sam Altman instantly transfer his entire fortune to me so I can reallocate it according to my whims.
A lot of people want to be billionaires, and somehow they assume the problem is solved because we have unfettered predatory late stage capitalism and oligarchy in America, we're going to be able to amass as much money as we want in our bank accounts, and so we're all going to be rich without oversight, accountability or government interference.
But from a global allocation perspective, actually it's quite terrible to have everybody, like, have a bunch of the world's wealth sitting in a few private bank accounts and being used .05% of the time.
Like you want maximum circulation of currency if you're trying to reduce inequality in this artificial scarcity environment,
And somehow, Americans' intuitions are the opposite of that.
FTFY Sam.
Fighting so hard not to make an edit about raping sisters, but that might be too degenerate for me
This is genuinely a fantastic response that is also absolutely correct in its premise
Except that most of their "money" is parts of the company, it "works". It only gets dangerous, if the economy is bad and people keep their (real) money, accelerating it further.
I was just going to leave it at "funny, I'd say the same thing about billionaires," but this is more through.
Funny because it's true
Can we hurry this shit up and get to the part where he kills himself rather than take the stand at his sister's lawsuit?
distributing trust to every person on the planet is so inefficient. All trust should be given to me!
He's not wrong.
Think Solar. Wayyyy more affordable to share a farm than build your own, and less battery required if load is shared when not in use by some. This is an extreme of that, even.
BUT. People want sovereign API because of trust, not efficiency. I don't mind a shared solar farm, but I want my own Safe Deposit Box for my important documents, not one shared with a bunch of smokers who have proven they drop ashes everywhere.
Solar is a bad example. It's super economic to have a panel on your balcony. No need to use the grid infrastructure at all most of the time
Keeps the load off the grid by generating the power exactly where needed instead of having to put the load onto the grid
This is more like housing
He's saying, rent from me because you don't really need a house, you should be happy with a single apartment that I have crammed 10 people into and rent is $5k a month. Be happy I give you electric and water access.
Unless you share a bed with 2 other people working different shifts, your bed is unused 16 hours a day. Personal beds are such a waste!
They also have 200 billion dollars of unused GPUs sitting in warehouses so who the fuck is he talking about when he claims that it's bad resource allocation. It's scarce because the tech industry artificially made it scarce. Why the fuck there's no anti trust campaigns agains the tech industry is beyond me.
What I find hilarious about all this clippy 2.0 shit, is that tech doesn't stay relevant for long. It's not like a car or house that can be used for 20 years like a car or 100+ for a house or longer...it becomes obsolete pretty quickly. Just go on eBay and you will see a fuck ton of smx2 and smx3 gpus for pennies of what they originally cost these idiots.
Yeah, they say on the spreadsheets that these cards have a lifetime of 5-6 years when in reality it's between 2 and 3.
5-6 is laughable for these guys... you're %100 correct. 5-6 years is for companies running their own stuff and even then, if you're hosting for clients that have any security measures in place, they will not be happy with you running aging and potentially EOL/S equipment.
Came here to say this. Yeah, it's bad allocation allright, but I don't do it for the perfect allocated resources.
"Peasants eating food and drinking water is such a waste of resources. Those could be hoarded by the rich! What a waste..."
He's absolutely right! This is a great argument for nationalizing it into a public service. I imagine he'll be happy to hand over what he's got so far, and step back going forwards. Thanks Sam!
McDonald’s can probably make hamburgers more efficiently than everyone can at home, but I’m not eating that shit any more than I’m giving Sam Altman my money or data.
Oh damn! Now there’s an analogy!
How about some optimization instead of swallowing up more and more RAM?
Also, they want more and more RAM, but where is the increase in profits coming with that additional RAM? And they somehow think they can keep this up forever? Kill the AI industry and rebuild it, idgaf.
Funny how there weren't any systemic supply issues until someone decided to buy up all the RAM ...
I was going to say that with swearing and all caps, thank you for keeping it classy.
Your parents didn't waste money on an avacado toast addiction, and THEY have a RAM.
A lot of people want local inference, and somehow they assume that the problem is solved now because we have open-source models, we're going to be able to run them on our computers, and so we're not going to need all the stuff in the data center.
We're going to be able to? That's wrong. We already can. Right now.
https://github.com/Niko1221/Strata https://github.com/ggml-org/llama.cpp https://github.com/earendil-works/pi
There's going to be use cases for data centers but I don't think it's going to be consumer LLM inference.
What can be run locally on mid hardware now couldn't be run half a year ago. Imagine one year from now.
Yep, you nailed it. Hardware and software will get better. Also, my desktop is already used for more than just local LLMs and doesn't require any water.
Sam Altman and everyone like him are welcome to ingest excrement and expire, doubly so when they themselves are in fact the cause of scarcity. Respectfully.
Moronic logic. The only reason LLM's work is because they scraped the internet, something only possible because personal computing became available to the wider public.
Next he's going to suggest that we just stop giving people any education and let a handful of elites do the thinking for the masses.
What an absolute clown.
It's not moronic, it's business. The man selling you tokens doesn't want you to use the thing that gives you tokens for free, it's hardly a surprise.
It's a crap excuse for sure, but his bias is obvious.
It wasn't a scarce resource before. Why is it more scarce now if we're just offloading into the cloud which makes it, supposedly, significantly more efficient? People had RAM before. Now they can't get any [for similar price].
It's not about resource utilization in the first place. We don't trust you.
Personal computers are a ridiculous idea, you should use our scalable mainframes instead --IBM in the 80s, probably
There was famously a guy who's said that the world needs like five or so computers. But that was when each computer took a whole room.
There's certainly nothing enjoyable to do on an AS400
As someone that makes use of an AS400 (well i series), I can confirm that there is no fun to be had.
I haven't seen the real thing in almost 30 years, but the company I work for uses the emulation and it has no noticeable improvements.
Crazy as it is. you can still get the (slightly modernized) hardware. IBM just makes too much money to stop supporting it.
Wow, that's awful
Pissing on an AS400 is kinda fun, especially if it’s running and not backed up
Just be careful not to piss on any high-voltage components.
And there it is.
“We made components scarce, so you have no choice but to use our cloud services where we control everything and you rent the privilege from us.”
Literally called it. Fuck these assholes with everything rusty.
Cory Doctorow predicted this fifteen years ago, although in a different context (transcript here).
No.. he actually is right. A local machine will sit idle most if the time.
A data center can balance loads globally.
In terms of resources.. data centers ARE cheaper.
However ... there are other reasons to use local interference that might be more important than added cost
No, his analogy is poor for many reasons. One is that people using local models are likely using that computer for other things as well, it is a resource that does many things unlike their slop farms. Also, DRAM wasn't a "scarce resource" until they devoured the industry with their AI ponzi scheme.
Only very few people have enough processing power to run a proper model.
Totally agree. It’s really about wealth distribution and who controls the resources. Altman is just trying to steer the conversation toward efficiency instead.
Well yes, or data security or whatever.
But on a purely costs level such big data centers are cheaper.. especially since they certainly getting better discounts than anyone else.
But even then I'd rather rent capacity from a hyperscaler than pay him.
You can aggregate spare LLM capacity in a collaborative p2p fashion. But my reasons would be to use spare PV capacity to run an uncensored model during daytime with full privacy.
Maybe but nothing will beat a dedicated data center in terms of costs.
Starting with purchasing prices etc etc.
And what happens if a rogue Ai hits a p2p network might be a funny read a few centuries later....
nothing will beat a dedicated data center in terms of costs.
If it was properly built.
That doesn't include the garbage data centers being built currently, wasting local municipal water for cooling and running huge temporary generators for power.
https://newjerseymonitor.com/2026/09/22/nj-vineland-data-center-fined/
Which costs? It's a PC. The power is free, since spare PV capacity.
The rogue AI will be the P2P network.
Going cheap almost always ends in a more expensive repair bill down the line.
Likewise, doing the most convenient thing to satisfy one's own desires is probably the most ill-advised course of action. Mainly, because it makes other people take the most convenient course of action to remove the other person from being a problem in their lives altogether.
Sure.. locking your customer in is always a good business option.
But the point remains.. for any given demand a big data center always is cheaper.
Cheapest doesn't mean best for all uses cases.
Ram is so cheap to make that until the AI demand companies basically had to create new levels of density/speed and sell for less just to keep the business afloat. This is like when cellphone companies tried to claim megabytes were a precious finite resource. We live in a post scarcity society and these billion assholes are like “well that just won’t do”.
It reminds me of that kid we all know who just learned economics from school house rock and then goes “now if I can simply find every evee Pokémon card in the world and burn them all except for the one I have, I’ll be rich!”
It’s just so frustrating to see this sheer stupid amount of greed all of the time. Thanks for coming to my TEDex talk.
Even if it was a scarce resource that's important to use efficiently, p2p inference sharing/markets are a thing, local hardware ownership doesn't have to mean it all sits idle.
like when cellphone companies tried to claim megabytes were a precious finite resource
Limiting the usage of a shared channel is a valid approach, it's remarkable how so many people just absolutely refuse to understand this. You can use the entire bandwidth of the shared channel for a while, when your webpage is loading. If you use the entire bandwidth nonstop, you fuck over everyone else on the channel. So the company has the choice between giving you fast load times but limiting your usage otherwise, or giving you 32 kbps unfettered.
If you want an entire channel of guaranteed bandwidth with unlimited usage, you always could and can get it — under business plans, which are orders of magnitude costlier, because they don't share the channels.
In a similar fashion, if your healthcare system is entirely free, it's getting clogged with retired old people who are lonely and have nothing better to do. If a doctor visit costs even a couple bucks (depending on the region), the doctors are suddenly much more free to deal with real cases.
Next he’s gonna say people should stop using water.
“now if I can simply find every evee Pokémon card in the world and burn them all except for the one I have, I’ll be rich!”
I mean, it worked for DeBeers...
Models running on swarms of shitty devices has been done... So this guy doesn't have a case.
I think it's sad that him and his company aren't buying up old devices, cards and hardware and integrating them, giving them a retirement.
Leaving current GPUs to be used by - you know - human beings.
Evil corpo is just mad I can do it good enough at home for free without a trillion in debt.
I bet he owns a car that gets less than 5% usage.
Having billionaires is a terrible allocation of scarce resources, don't you find?
I bet he had literally never touched a bus.
I came here to say exactly this!
Change the word DRAM to car and see how ridiculous this sounds. And I'm a big supporter of public transit.
Some of you will have to sacrifice for the greater good, but it won’t be him.
Finally, someone got the message.
So many people will opt to continuously rent instead of buying though. They think they are too poor to buy so will mortgage their entire future to all the subscriptions they willingly pay billionaires for. Need to go back to a cash economy when credit was hard to obtain because the way it is now those corporations have convinced people that they need everything all the time even if they can't afford it and that the corps will give them credit (indentured servitude) in exchange for all the disposible stuff. I realize that houses are out of reach for many people under 40 however the amount of disposible stuff they can finance (not own) compared to what people 25 years ago could finance is mind boggling.
Sounds like a problem for the sharing economy: kinda like you're able to do https://foldingathome.org/
I'm sure someone will come up with a solution that lets you rent out excess capacity from your gpu cluster.
Wouldn't that end up like the crypto mining market? Mostly big players due to economies of scale, with hobbyists struggling to break even.
I think it might - but no idea honestly haha
I was envisioning it's bit more like Airbnb where you rent out your capacity when you have excess.
"sindy swindy shouldn't go out with that guy he's all yucky and gross" says CEO of the "sindy should be blowing ME" corp. in answer to a question on whether he'd ever score, he assured the news dolts that he's gonna score, any day now
Can you imagine everyone carrying around gigabytes of memory, in their pocket? Unthinkable.
The state has detected you are using your RAM inefficiently. Surrender your devices immediately and submit to manadatory neuralink installation
Flashbacks to bickering with Chrome fanboys. 'Unused RAM is wasted RAM!' Yeah sure buddy, that totally justifies a 32 GB system thrashing because of a fuckin' browser.
Central planning but by the private sector
On a somewhat related note, the private sector routinely does central planning in areas dominated by few large players. E.g. Walmart. They use a version of the mathematical models the Soviets came up with to do central planning at Gosplan.
Combining the worst parts of capitalism with the worst parts of communism, we've basically created the perfect economic system. Well, for the billionaires and oligarchs anyway.
“Fascism should more properly be called corporatism because it is the merger of state and corporate power.”
— Benito Mussolini (disputed)
yeah my computer with all it's computing power is turned off most of the time
and so is pretty much everything I own except my phone
Exclusively pursuing efficiency manifests as intrinsically brittle systems and monocultures. Maximum utilisation is only desirable for strip mining.
Disperse, choreographed capabilities provides reliability and resiliency, slack permits flexibility and predictable maintenance.
All this is orthogonal to the legitimacy of the use and demand of the grift this clown is selling.
ハチロク ハチロク ハチロク ハチロク ハチロク ハチロク
This clearly staged photo op is a interesting choice. I can see how it's meant to humanize Sam, and portray him as a common, ordinary person. But why does it looks like someone just gave him a compliment and made him flustered?
As if the ONLY thing your memory could be used for is running AI models.
Hey buddy, we need this shit to use our BROWSERS or to play GAMES. I have a GPU in my computer that can run most new AI models when quantized at a speed that would be perfectly reasonable for any home user that doesn't want it to literally replace every ounce of their thinking, and I bought that shit before ChatGPT was even a thing, because I wanted to play fucking video games.
I have a NAS with 16 gigs of RAM and a consumer-grade CPU that's a few generations old, and it can still run models with zero GPU or AI accelerator if you give it a little time.
Is it going to be perfectly tuned, and run at the highest possible speed if you design a datacenter just for AI models? Of course it is. But do most people on this planet need that or give a fuck about it? Absolutely not.
CEO said a thing
Sexual predator who raped his sister CEO said a thing
I make all my life decisions based on what CEOs say. The trick is, I usually go the opposite direction.
heavy statement about local inference in a local inference Lemmy? not allowed?
I wish there was an option to just block all "CEO said a thing" news from my feed.
Every word uttered by a conservative is deception or manipulation. In this case, it's both. Sam Altman is a con man.
Well, not everyone can buy tickets to the big rock concert that'll be in town next week. Just a fact of life. This is nothing new. Money guy's gonna grift though, amirite?
See this is why, for most agentic work, I use inference providers that clearly run Open Weights models and have it in their terms that they won’t use my data to train models. Then, for fucking around, or for more sensitive work or my PII stuff, I use local models.
