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"

top 99 comments

sorted by: hot top controversial new old
[–] 225 points 1 week ago (2 children)

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.

  • source
  • hideshow 2 child comments
  • [–] 3 points 1 week ago* (last edited 1 week ago)

    McDonald's does but its still more expensive than making hamburgers at home, why?

    Because profit motive is an inefficiency.

    Profit motive is also a misallocation of limited resources. Regular soup kitchens can feed hundreds of people at the cost of only a few dollars per portion. The only advantage they have is buying wholesale. Imagine spawning out of thin air a nonprofit with the vertical integration and logistics of McDonalds. How many people could it feed for next to nothing?

  • source
  • parent
  • [–] 164 points 1 week ago (2 children)

    Funny how there weren't any systemic supply issues until someone decided to buy up all the RAM ...

  • source
  • hideshow 2 child comments
  • [–] 89 points 1 week ago* (last edited 1 week ago) (5 children)

    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.

  • source
  • hideshow 5 child comments
  • [–] 61 points 1 week ago (1 child)

    Some of you will have to sacrifice for the greater good, but it won’t be him.

  • source
  • hideshow 1 child comment
  • [–] 105 points 1 week ago (8 children)

    Personal computers are a ridiculous idea, you should use our scalable mainframes instead --IBM in the 80s, probably

  • source
  • hideshow 8 child comments
  • [–] 15 points 1 week ago (6 children)

    There's certainly nothing enjoyable to do on an AS400

  • source
  • parent
  • hideshow 6 child comments
  • [–] 5 points 1 week ago (3 children)

    As someone that makes use of an AS400 (well i series), I can confirm that there is no fun to be had.

  • source
  • parent
  • hideshow 3 child comments
  • [–] 5 points 1 week ago (2 children)

    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.

  • source
  • parent
  • hideshow 2 child comments
  • [–] 44 points 1 week ago (2 children)

    Sam Altman is a terrible utilization of scarce resources.

    I want to use ram for things unrelated to AI you fucking prick.

  • source
  • hideshow 2 child comments
  • [–] 39 points 1 week ago

    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.

  • source
  • [–] 35 points 1 week ago* (last edited 1 week ago) (3 children)

    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?

  • source
  • hideshow 3 child comments
  • [–] 13 points 1 week ago (1 child)

    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

  • source
  • parent
  • hideshow 1 child comment
  • [–] 35 points 1 week ago (2 children)

    Can you imagine everyone carrying around gigabytes of memory, in their pocket? Unthinkable.

  • source
  • hideshow 2 child comments
  • [–] 8 points 1 week ago* (1 child)

    The state has detected you are using your RAM inefficiently. Surrender your devices immediately and submit to manadatory neuralink installation

  • source
  • parent
  • hideshow 1 child comment
  • [–] 35 points 1 week ago (3 children)

    Central planning but by the private sector

  • source
  • hideshow 3 child comments
  • [–] 15 points 1 week ago (2 children)

    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.

  • source
  • parent
  • hideshow 2 child comments
  • [–] 18 points 1 week ago (1 child)

    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.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 34 points 1 week ago (3 children)

    I bet he owns a car that gets less than 5% usage.

  • source
  • hideshow 3 child comments
  • [–] 33 points 1 week ago*

    new title:

    "Man whose company lost $20b in previous year explains how to allocate resources."

  • source
  • [–] 30 points 1 week ago (2 children)

    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'.

  • source
  • hideshow 2 child comments
  • [–] 10 points 1 week ago (1 child)

    It kind of blows my mind how our society is set up to give the most power to the worst people.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 2 points 1 week ago

    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.

  • source
  • parent
  • [–] 56 points 1 week ago (1 child)

    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.

  • source
  • hideshow 1 child comment
  • [–] 24 points 1 week ago (1 child)

    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.

  • source
  • hideshow 1 child comment
  • [–] 6 points 1 week ago

    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.

  • source
  • parent
  • [–] 69 points 1 week ago (5 children)

    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.

  • source
  • hideshow 5 child comments
  • [–] -1 points 1 week ago* (last edited 1 week ago) (2 children)

    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.

  • source
  • parent
  • hideshow 2 child comments
  • [–] 1 point 1 week ago (1 child)

    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.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 2 points 1 week ago

    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.

  • source
  • parent
  • [–] 23 points 1 week ago* (last edited 1 week ago)

    distributing trust to every person on the planet is so inefficient. All trust should be given to me!

  • source
  • [–] 23 points 1 week ago (2 children)

    Fuck this loser piece of shit

  • source
  • hideshow 2 child comments
  • [–] 23 points 1 week ago

    CEO of Pizza Hut says making pizzas at home is a terrible allocation of resources.

  • source
  • [–] 22 points 1 week ago

    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...

  • source
  • [–] 22 points 1 week ago (1 child)

    Computing for me, not for thee

  • source
  • hideshow 1 child comment
  • [–] 21 points 1 week ago

    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.

  • source
  • [–] 21 points 1 week ago

    letting sam altman (or billionaires for that matter) have all the money from our work is a poor allocation of resources.

  • source
  • [–] 19 points 1 week ago

    Shovel seller vehemently against you building your own shovel

  • source
  • [–] 18 points 1 week ago (1 child)

    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.

  • source
  • hideshow 1 child comment
  • [–] 8 points 1 week ago*

    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.

  • source
  • parent
  • [–] 17 points 1 week ago

    It's not about resource utilization in the first place. We don't trust you.

  • source
  • [–] 17 points 1 week ago

    we lost Captain Picard yesterday, yet this lazy-eyed cardboard human gets to keep using oxygen. there is no justice in this world.

  • source
  • [–] 16 points 1 week ago (1 child)

    Please don't run AI for free on your own workstation 😭 it's a very bad use of your computer 😥

  • source
  • hideshow 1 child comment
  • [–] 16 points 1 week ago* (1 child)

    "Raping your own siblings at home is terribly inefficient when we have private islands where we can keep and rape other people's siblings."

  • source
  • hideshow 1 child comment
  • [–] 10 points 1 week ago

    "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)."

  • source
  • parent
  • [–] 16 points 1 week ago

    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!

  • source
  • [–] 16 points 1 week ago
    [–] 15 points 1 week ago (2 children)

    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.

  • source
  • hideshow 2 child comments
  • [–] 15 points 1 week ago

    Yeah no. I will hoard all the computing resources I can. Fuck you Altman.

  • source
  • [–] 14 points 1 week ago

    But Sam, local inference is what would prevent our data from being used by creepy advertisers.

  • source
  • [–] 39 points 1 week ago (11 children)

    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

  • source
  • hideshow 11 child comments
  • [–] 10 points 1 week ago (1 child)

    Totally agree. It’s really about wealth distribution and who controls the resources. Altman is just trying to steer the conversation toward efficiency instead.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 9 points 1 week ago (3 children)

    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.

  • source
  • parent
  • hideshow 3 child comments
  • [–] 2 points 1 week ago (2 children)

    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....

  • source
  • parent
  • hideshow 2 child comments
  • [–] 7 points 1 week ago (1 child)

    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.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 5 points 1 week ago (1 child)

    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.

  • source
  • parent
  • hideshow 1 child comment
  • [–] 13 points 1 week ago

    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.

  • source
  • [–] 13 points 1 week ago

    Oh BROTHER this does this guy suck!

  • source
  • [–] 12 points 1 week ago (1 child)

    This is what crack heads sound like when explaining why they stole some junk off of someone's porch

  • source
  • hideshow 1 child comment
  • [–] 12 points 1 week ago

    This fucking guy needs to suck a tailpipe

  • source
  • load more comments
    view more: next ›