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First, smaller models are fun for hackers: you can run them locally, or run them faster.

Second, when cloud models become unavailable or otherwise deteriorate, these will be all you have. May as well prepare.

If you're hacking a US-based entity, using a high-performance Chinese model through a VPN is probably safe enough. I doubt a local model is going to be sufficiently smart to hack any major company.

You misunderstood what I was referring to by “hacker” there.

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