Cloudy With a Chance of Local Models: When On-Prem AI Starts Beating the API
Opening — Why this matters now For years, enterprise AI strategy has been framed as a binary choice: rent intelligence from cloud APIs, or spend lavishly recreating a miniature hyperscaler in-house. Charming fiction. A new benchmark on System Dynamics AI assistants suggests a third path is maturing quickly: highly capable local inference stacks running frontier open-source models on prosumer hardware. Not everywhere. Not universally. But enough to make procurement teams nervous and GPU vendors philosophical. ...