Sam Altman argues that, given the DRAM shortage, it is inefficient for individuals to hold scarce memory in local machines used about 5% of the time, and that cloud data centers offer better utilization.
But from a global allocation perspective, actually, it’s quite terrible to have everybody have a bunch of the world’s limited supply of DRAM sitting in their own computer and being used five percent of the time. You want maximum utilization in the cloud if you’re trying to deal with this very supply constrained environment.