This is, as far as I know, the business model of coys like mistral and cohere
On-premise (1960-2010) -> Cloud (2010-2026) -> On-premise (2026+)?
Re:Running local models is good now
by indoordin0saur on Tuesday June 16, 2026 @12:18PM
(#48557638)
I think that's overstated, but the loss of trust companies have with the big AI players is pretty serious. Not a big deal if your app is for sharing cat videos, but if you're medical or wealth management or a government contractor or the like enterprise clients really like to see good data security policies.
Re:Running local models is good now
by lelanthran on Tuesday June 16, 2026 @03:00PM
(#48560261)
> Not a big deal if your app is for sharing cat videos, but if you're medical or wealth management or a government contractor or the like enterprise clients really like to see good data security policies.
If this mattered to them, they wouldn't be running so much in the cloud or in proprietary software that they have no ability to air-gap.
If companies ever cared about this, Windows would not be dominant on the desktop.
Re:Running local models is good now
by indoordin0saur on Tuesday June 16, 2026 @03:59PM
(#48561109)
There are a lot of government jobs I know of that are absolutely air-gapped. Your computer has basically no internet access, everything is stored on-prem. Hedge funds also tend to be extremely locked down, from what I saw when I interviewed. With certain data sets either having strict encryption-in-transit or a being stored in a quirky on-prem service. I can't imagine they're going to be dumping their data into Claude, etc.
As to why Windows is so dominant, I'm as clueless as you.
> There are a lot of government jobs I know of that are absolutely air-gapped. Your computer has basically no internet access, everything is stored on-prem.
I wonder if that's because they don't know better or because of a lack of trust or costs?
Re:Running local models is good now
by indoordin0saur on Monday June 29, 2026 @08:56AM
(#48718674)
It's lack of trust
Agree. I also wonder how zero e.g., Claude Enterprise ZDR really is, and what their data pipeline actually looks like.
I think the next step to anyone but overbloated USA models is to follow https://chatjimmy.ai/ with one of the qwen models. If they can mass produce something at relative cost, these would be awesome sidecars.
For this reason I wonder if local models are a potential business opportunity. Provide the service to engineering teams to give them a pre-built and setup GPU rig they can run in a closet. No need to worry about all the things you mentioned and clients can rest-assured their data isn't disappearing into a sketchy data center. There might be regulatory reasons that make on-prem setups appealing as well.