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.
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Funny how there weren't any systemic supply issues until someone decided to buy up all the RAM ...
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.
This is genuinely a fantastic response that is also absolutely correct in its premise
I was just going to leave it at "funny, I'd say the same thing about billionaires," but this is more through.
Fighting so hard not to make an edit about raping sisters, but that might be too degenerate for me
Some of you will have to sacrifice for the greater good, but it won’t be him.
Personal computers are a ridiculous idea, you should use our scalable mainframes instead --IBM in the 80s, probably
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.
Pissing on an AS400 is kinda fun, especially if it’s running and not backed up
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.
Sam Altman is a terrible utilization of scarce resources.
I want to use ram for things unrelated to AI you fucking prick.
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.
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
At this point - especially with this commentary - the datacenter build-up seems like market manipulation. Like how hyper-scaling keeps competition scarce.
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
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.
I bet he owns a car that gets less than 5% usage.
new title:
"Man whose company lost $20b in previous year explains how to allocate resources."
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.
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).
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.
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.
Right… In this instance I would argue openAI is the shared channel. There are three memory manufacturers now illegally rigging the market as a push back against the corporate AI. Something like a memory oligopoly VS ai monopsony?
If we all have inference, we avoid clogging shared channel.
And as for megabytes, the value of the megabyte isn’t a finite resource and the value of it is determined by what data is served in the megabyte and the cell companies didn’t care what megabytes you’re getting charged for (example full bitrate advertisements on YouTube). I still think that’s a valid argument to be had.
By the value based on scarcity of bandwidth logic, the phone companies would be able to charge peak megabyte hours to specific websites (again like they used to for telephone calls with plans that included free calls at night) when in fact they can handle much more bandwidth now. In reality when it comes to that traffic, it’s often the providers at the ends of the line who have to suffer the constraints of demand. Maybe they should charge per minute of video accessed or it could be a solved problem in a hyper-competitive, over-saturated marketplace.
I understand what you are saying. I just don’t believe it applies in this specific domain any longer. This is potentially a more valid take an underserved market.
the phone companies would be able to charge peak megabyte hours to specific websites
ISPs in the US were aiming to do that, since video traffic dominates the web pretty heavily now. But that could be easily abused, so they were slapped away with the net neutrality regulations, which iirc Trump rolled back.
I just don’t believe it applies in this specific domain any longer.
You referred to the megabytes thing in the past tense, yes, but the reasoning applied back then. In fact, gigabit speeds are still not prevalent worldwide (nor just in the US, from what I understand about their shitty ISPs). I can easily saturate the 100 mbps allotted to my cable-connection plan in the neighbourhood that doesn't provide much choice, and I'm pretty sure mobile connection isn't better than that in most cases.
distributing trust to every person on the planet is so inefficient. All trust should be given to me!
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.
CEO of Pizza Hut says making pizzas at home is a terrible allocation of 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...
Computing for me, not for thee
Guy selling product: “Here’s why owning your own product instead of renting it from me is a terrible idea”
Guy with the spying infrastructure in place to steal your product when renting his product, says you escaping his ability to spy is waste of resources.
letting sam altman (or billionaires for that matter) have all the money from our work is a poor allocation of resources.
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.
It's not about resource utilization in the first place. We don't trust you.
we lost Captain Picard yesterday, yet this lazy-eyed cardboard human gets to keep using oxygen. there is no justice in this world.
Please don't run AI for free on your own workstation 😭 it's a very bad use of your computer 😥
"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)."
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!
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.
But Sam, local inference is what would prevent our data from being used by creepy advertisers.
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
Totally agree. It’s really about wealth distribution and who controls the resources. Altman is just trying to steer the conversation toward efficiency instead.
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.
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.
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.
But even then I'd rather rent capacity from a hyperscaler than pay him.
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.
This is what crack heads sound like when explaining why they stole some junk off of someone's porch

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