Local vs remote compute is a constant thread in tech history - mainframes and desktops then local and cloud compute (think Google Photos bs Apple photos - one indexes on device the other indexes in cloud). Now we have the next chapter local vs cloud LLM models.
There will always be a market for frontier labs in the cloud based models - these models will always be able to be bigger, and that will likely translate to doing things local models can’t.
Logically also we’ll likely get to a point where RAM drops in price as production ramps up, and local LLM is both capable and cost effective. This feels like it is coming for Siri / Gemini / Alexa personal assistant type use cases.
So I think the local LLM will become a thing in laptops and phones in a year or two, offering PA type use cases. Professional LLM services will likely remain at the frontier (and in the cloud) for the foreseeable.