I actually think local LLMs are going to end up being far more important than people currently think, just probably not for the reasons people on X talk about
everyone frames it as "run GPT on your laptop" I think that is the least interesting outcome
every serious AI product will probably end up with a local component. the heavy reasoning can stay in the cloud, but local models will handle low-latency tasks, personalization, offline workflows, and anything you would rather not send to someone else's servers
I also think they become the orchestration layer. instead of trying to outperform GPT or Claude, your laptop runs a small model that decides what stays local, what gets sent to Claude, what needs GPT, and when simple retrieval is enough
Ironically the local model does not need to be the smartest model. It just needs to be smart enough to coordinate the expensive ones
giving an AI agent your private keys is literal financial suicide. everyone wants automated yield, but nobody wants their bot hijacked by a rogue prompt injection
look at what happened in May. hackers tricked grok's AI wallet integration with a disguised Morse code prompt and stole billions of tokens
the industry is solving this by completely separating intelligence from authorization. major players like @Ledger are anchoring security to the Secure Element chip
your AI can monitor markets and queue up transactions, but it never holds the actual signing authority
think of it as a strict hardware allowance. you define the rules directly on the device, such as restricting the bot to spend no more than $500 per day. a larger rotation requires a physical button press