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What if the AI companies start selling the hardware with their models?

I.e., you get a locked down device with access to their AI and maybe a way to run third party apps. Of course the developers of those apps will have to pay a percentage of their revenue.

Sound familiar?

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More likely they would sell a chip with the model etched in silicon for the dramatically higher token/s.

A chip that can only be accessed through their software. With a monthly subscription fee, and other enshittification surprises.

Most likely those models would be extracted from the hardware in no time.

I suspect no, because most of the tokens would be used for its internal reasoning loop, and a cheaper model could be used to obfuscate the output.

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