[1] https://www.qualcomm.com/products/technology/processors/clou...
[2] https://github.com/quic/software-kit-for-qualcomm-cloud-ai-1...
For anything that can be run remotely, it'll always be deployed and optimized server-side first. Higher utilization means more economy.
Then trickle down to local and end user devices if it makes sense.
If you want to build a business around LLMs, it makes a lot of sense to be able to run the core service of what you want to offer on your own infrastructure instead of rely on a 3rd party that most likely doesn't give more than 1% care about you.
The reasoning seems mostly obvious to me here: people do not care for the effort that decentralization requires. If given the option to run AI off some website to generate all you want, people will gladly do this over using their local hardware due to the setup required.
The unfortunate part is that it takes so much longer to create not for profit tooling that is just as easy to use, especially when the calling to turn that into your for profit business in such a lucrative field is so tempting. Just ask the people who have contributed to Blender for a decade now.
You can run many AI applications locally today that would have required a massive investment in hardware not all that long ago. It's just that the bleeding edge is still in that territory. One major optimization avenue is the improvement of the models themselves, they are large because they have large numbers of parameters, but the bulk of those parameters has little to no effect on the model output and there is active research on 'model compression', which has the potential to be able to extract the working bits from a model while discarding the non-working bits without affecting the output and realize massive gains in efficiency (both in power consumption as well as for running the model).
Have a look at the kind of progress that happened in the chess world with the initial huge ML powered engines that are beaten by the kind of program that you can run on your phone nowadays.
https://en.wikipedia.org/wiki/Stockfish_(chess)
I fully expect something similar to happen to language models.
Which is the point, decentralization will always be playing catch up here unless something really interesting happens. It has absolutely nothing to do with local compute power, that has always been on an incline. We just get fed scraps down the line.
If anything the steps are now so closely following each other that we have far more trouble tracking the societal changes and dealing with them than that we have a problem with the lag between technological advancement and its eventual commoditization.
Centralization of compute has not always won (even if that compute is mostly controlled by a single company). The failure of cloud gaming vs consoles, and the success of Apple (which is very centralized but pushes a lot of ML compute out to the edge) for example.