For now. And that too at a massively discounted rate to drive adoption.
> When open weight models trail _at most_ a year behind the closed ones and compute continues to proliferate?
Open-weight models require computing power to run. Consumer hardware prices are rising because of AI build-out, so much so that companies that used to serve ordinary consumer markets are switching to serve only datacenters. Megacompute does indeed continue to proliferate.
> One of the few things we have figured out about AI is that productivity gains are mostly captured by the people using the tools, not the person paying for the model. In other words, using an LLM is a skill and there is still no substitute for the human driving it.
Will this be the case in 20 years? Agentic workflows have come as far as they have in about two years of existence. Do you really need the problem between chair and keyboard will be needed after another 10? And do you really think that in 20 years time that we will all be paid to prompt increasingly advanced and independent LLMs?
> everyone who is willing to accept the machine's gifts has their every material need catered to
The way automation is going, knowledge work will be automated first before any physical production processes are. A lot of people will lose their livelihoods before goods in particular become "the machine's gifts". What do you think happens then? Will the capital owners who have captured this reduction in costs reduce prices proportionally? Or will they keep the gains for themselves? Do you think governments around the world will tax the upper class to the point of being able to give everyone their current livelihoods through government benefits?
You are pretty much just describing some sort of fantasy automated communism. Not to mention, in your world, gatekeeping the machines would instantly become the most profitable venture possible.