Its all going to become more efficient enough you can run it all locally. Why are we trying to piss away zillions of dollars on data centers

The idea that the hardware we currently have is good enough for future applications hasn't been true of software in general. As better hardware becomes available, software has improved to take advantage of it. Also, the improvements in software have allowed the development of even better hardware, in a virtuous cycle.

Also, regarding local vs cloud computing in general, datacenters provide an economy of scale that can't be matched by local compute. Shared datacenters are also more efficient than everyone having expensive hardware that they only use a fraction of the time. This is why datacenters were expanding rapidly even before the recent advances in large language models.