Small models have gotten remarkably good. 1 to 8 billion parameters, tuned for specific tasks — and they run on hardware that organizations already own
Hard disagree as someone who does host their own AI. Go on Ollama and run some models, you'll immediately realize that the smaller ones are basically useless. IMO 70B models are barely at the level of being usable for the simplest tasks, and with the current RAM landscape those are no longer accessible to most people unless you already bought the RAM before the Altman deal.
I suspect this is why he made that deal despite not having an immediate need for that much RAM. To artificially limit the public's ability to self host their own AI and therefore mitigate the threat open source models present to his business.