Outsourcing plus LocalAI will soon become more economical vs Frontier labs
Summary
Analyzes the cost dynamics of outsourcing AI work to cheaper regions with LocalAI/OSS models versus using frontier closed-source LLMs. It provides a rough per-1M-token cost comparison across Anthropic, OpenAI, and DeepSeek, highlighting that local/OSS options can significantly reduce expenses and potentially cap frontier pricing when paired with a human engineer. The piece also notes token consumption growth and market reflexivity as drivers of evolving AI economics.