Cloud models will always have massive benefits of scale.
Caching is the simplest one to understand, cloud providers often reach a 90% cache hit rate, so hosting the same request locally on the exact same model on the same hardware is often way less efficient than on the cloud where a group of users generates a healthy cache.
KV cache is per conversation, I'm getting 100% hit rate on my single tenant local set up.
The benefits of scale are on the token generation side, you can batch rounds and generate tokens for multiple conversations per pass instead of just one token per pass.
Distributed systems are hard. For all we know, this could be the error code returned by some DNS service that is down because of load and a proxy cannot find the records, so 404 makes sense, or whatever. Systems like these don't always have a easy point in the infrastructure that can ALWAYS respond correctly no matter what.
Vibe coded or not, building and running distributed systems is hard :P I think only people who never built and/or ran them would say it isn't hard, regardless of what tools you have available. Not saying OpenAI won't find it extra hard due to their vibe coding, still hard when you're a group of knowledgeable people with/without AI.
When you're dealing with millions of users and response times go up above timeouts, there isn't much difference between "at capacity" and "down" if most users can't reliably use the service.
That line of reasoning has no end. If you use Antigravity on anything other than a Google Chromebook or Pixel, the hardware is a 'product not provided by them'. Is that a TOS violation?
" Your Google Cloud billing account is being processed. Processing time varies from a few moments to a few weeks. "
What kind of bullshit is this? I want to test out Gemini-3.5-Transcribe in my app, but have to wait a completely indeterminate time, have already waited over 24 hours. OpenRouter took seconds to set up
Just hype, it's Kagi all over again. People said the same thing there, we're just too cynical, not used to people getting excited about really cool stuff anymore.
Caching is the simplest one to understand, cloud providers often reach a 90% cache hit rate, so hosting the same request locally on the exact same model on the same hardware is often way less efficient than on the cloud where a group of users generates a healthy cache.
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