I’m not worried about that. There will be open competition, because most of this stuff is open-source. Cheaper hardware will open the door for anyone like you or me to set up our own services. Anyone can set up a server with their own hardware (or rent it from Amazon or wherever) and run their own chatbot (with blackjack! and hookers!) instead of using ChatGPT.
This is already possible on consumer hardware, just not with the biggest and best networks. Right now, if I wanted to run, say, BLOOM (an open-source LLM), I’d need to spend close to $100K on hardware. Obviously, that’s out of reach for a hobbyist, so I’m limited to using smaller, less advanced networks like LLaMa or GPT-J. Cheaper hardware will help break the hold that the big players currently have over the industry.