In this episode, I follow up on a few of my predictions about AI from my recent video: "How AI Will Fail Like The Music Industry"I Was Right About AI | 7:46
Rick Beato | 5.68M subscribers | 687,763 views | June 18, 2026
Posted on 06/19/2026 4:07:22 PM PDT by SunkenCiv
In this episode, I follow up on a few of my predictions about AI from my recent video: "How AI Will Fail Like The Music Industry"
I Was Right About AI | 7:46
Rick Beato | 5.68M subscribers | 687,763 views | June 18, 2026
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Transcript
Hey everybody, I’m Rick Beato. So back in March, I made a video called how AI will fail like the music industry. In that video, I predicted that all these data centers that are being built now, many of them will never get finished. They will not be needed because people are going to use AI programs, local LLMs that are not connected to the internet. Because the same thing happened in the music industry 25 years ago. People used to record in recording studios. Now they record at home on their computers because they don’t need recording studios because computers have gotten so much faster.
Now, since that video came out, I went to buy a few hard drives. Now, I typically use solid-state hard drives that are 4 to 8 terabytes, and the kind I use are Samsung. When I bought these, let’s say a year ago, they cost, I don’t know, $250 for a 4 terabyte and maybe $430 for an 8 terabyte. So, I haven’t bought any in a while. And I was like, I’m going to buy some stuff ‘cause I don’t go over drives. I just keep using, I buy new ones, use them. I back them up to the cloud and back them up places.
So, I go into this place. I ask the guy, “Hey, can you unlock the cabinet?” They have cabinets and stuff. So, um, can you unlock the cabinet? And all of a sudden, I look in the cabinet, I see $2,000. And I said to the guy, “$2,000? What’s that for?” He goes, “That’s for the 4 terabyte hard drive.” I’m like, “$2,000? That’s insane.” And I see the 8 terabyte one. $4,000 for an 8 terabyte. $4,000. They had a couple of them in there. I said, “What’s up?” He said, “Oh, yeah. Uh, they’ve gone up 1000% since last October.” I like 1000%. And you have almost none in there. Yeah, because we can’t even get them anymore. And I said, “Why?” Because they’re using them in the data centers. They’ve already been bought up. They’re buying them before they even get manufactured. So, they can’t even get any. The same thing is happening with RAM. Go try and buy RAM at places. It’s incredibly expensive if they even have it. So, if you’re trying to build a computer, it’s almost impossible to do that.
So, then I was like, “Okay, I need to get some new cards, memory cards, SD cards for the camera that I’m recording on right now.” Those have tripled in prices. Anything with storage has gone insanely just through the roof in price.
Well, since then, over the last month, I started seeing things like this. All these new computers that are coming out that are basically built to run local LLMs like I predicted in my video in March. Okay, check some of these out. Today, I’m excited to announce the AMD Ryzen AI Halo, a new reference platform for local AI deployment. This is the smallest AI development system in the world, capable of running models with up to 200 billion parameters locally, not connected to anything.
Microsoft and Nvidia have just announced the world’s most powerful and efficient thin and light Windows PC ever. In their words, AI creation, 3D rendering, and multimodal workflows run simultaneously with up to one petaflop of AI compute and the ability to run 120 billion parameter models locally. Today, I’m going to show you how to build and run a Gentic AI workflow entirely on your Mac using MLX. No cloud, no API keys, just your hardware doing the work.
Now, in the last video, I ran a local LLM, meaning it was on my computer and not connected to the internet. The internet was turned off and I was using it. That had was a 36 billion parameter LLM. They have LLMs on Hugging Face, the website that I got it from, they have over a trillion parameter LLMs. Now, to run that, to run a trillion parameter LLM, I know, just stick with me here. You need a minimum of I think 512 gigabytes of RAM, but you really need a terabyte, two terabytes, four terabytes of RAM, which you really is difficult to do. But now they’re building these computers that are optimized to run local LLMs just like I predicted.
What does that mean? Well, companies like Nvidia have their own LLMs that you can download from their website. You can get LLMs that are open source on Hugging Face. You can find them places, right? People are starting to use them. And the manufacturers, the people that build these computers, Apple, Google, HP, Microsoft, all these companies are building computers that can run local LLMs because 90% of what most people need to do, they can just run on their computer on a local LLM. You don’t need a data center to do that.
Now, another thing is going on at the same time. Kids, not only my kids, all my kids’ friends and college students, so many people I’ve talked to hate AI. They don’t just hate AI slop, AI videos, things like that. They hate the concept of AI. They hate AI music. Anytime they see anything related to AI, they want to run from it as quickly as possible. They don’t want to hear about AI music. I’m not saying that people are not using AI or kids are not using AI, but there’s a real anti-AI movement out there as you can see from these clips of people giving commencement addresses like Eric Schmidt who used to be at Google.
Time magazine selected its person of the year for 2025 and it was this time it was the architects of artificial intelligence. Interesting.
[cheering and applause]
The rise of artificial intelligence is the next industrial revolution.
Oh, what happened? AI is rewriting production as we sit here.
I know it. Deal with it. Like I said, it’s a tool.
Hey, like I said, you can hear me now or you can pay me later.
So, if kids don’t want to use AI and you can run AI locally on your computer, not connected to the internet, what are these data centers for? Obviously, you need to train these AI programs, but do you need data centers that are the size of 60 football fields? I was driving to see a friend yesterday and I drove into his neighborhood, he lives here in Atlanta, and I noticed two flock cameras as you come in. Well, one that films you coming, one that films you going. And I asked him, I said, “What’s up with the flat cameras?” I don’t know. Our HOA decided to put them in. There’s nothing I can do about them.
If you guys don’t know what flat cameras are, they’re cameras that basically take your license plate. They can do all this kind of stuff. There’s a lot of great videos out there. So, what are they doing with all this information from these flat cameras? We are being surveilled everywhere. They’re gathering all this information about people. You go to the airport, you have your picture taken getting on the plane, you have it taken getting off the plane, you go to another country, they take your pictures. All of it is all facial recognition. All this stuff is being stored. I guess it’s being stored on these $2,000 4 terabyte solid-state hard drives in the data centers. I don’t know why they need it. I need it to store my videos on so I can make stuff for YouTube here. Now, YouTube uses data centers, but they use it to send the videos out over the entire world.
I’d love to know your thoughts about this. I just thought I’d do this updated video on it because it’s amazing to me how many new things have come out since I made my last video just a few months ago. It’s really incredible. Love to know your thoughts. Leave a comment, hit subscribe. Thanks for watching.
Red Lobster CEO using AI, nostalgia for ‘greatest comeback in the history of restaurant industry’
The government will be using it more. Analyzing all that voice and data traffic.
What fraction of a data center would it take for the government to identify political stripes on FR?
Kids, not only my kids, all my kids’ friends and college students, so many people I’ve talked to hate AI. They don’t just hate AI slop, AI videos, things like that. They hate the concept of AI. They hate AI music. Anytime they see anything related to AI, they want to run from it as quickly as possible. They don’t want to hear about AI music. I’m not saying that people are not using AI or kids are not using AI, but there’s a real anti-AI movement out there
So, what are they doing with all this information from these flat cameras? We are being surveilled everywhere. They’re gathering all this information about people.
I’ve tried some AI music. My main problem - the same voice for hours. Needs more DEI.
I believe that in the NOT too distant future the technology/data sciences will advance to the point where NO ONE is paying for online AI services any more. It’ll ALL be locally hosted, and probably in a very small device.
Crazy stuff, I knew that when Micron said they were no longer going to sell to the public that it was going to get crazy. I considered buying some stuff, and I should have bought some ddr5 but I did not need and wont have a real need for it anytime soon, and probably not even then
Amd and Intel are making some crazy stuff now, processors with 256 cores, and then OEMs are making servers that will take two of them, and several TB of ram. These are of course cheap compared to the 6 h200 cards or 350 you might put in them. Maybe you just want lots of storage for all your tracking data, so you put 12 36tb hard drives in each server.
I just upgraded all my personal stuff only because of tpm, it was kinda time and everything was cheap right before the massive inflation. only problem is that I have trouble getting rid of old perfectly working hardware.
Local is going to win, though the Artificial Empire is trying to kill it through pressure on the supply lines for PCs.
What this means, is that if I do something stupid, the authorities will have an easy time throwing me in jail. They will have mountains of evidence proving that I was the one who did that stupid thing.
What it also means is that if so-and-so dies mysteriously in his jail cell, the cameras weren't working that day. And it means that if cocaine is found in the White House, there won't have been any cameras in that precise location. And it means that if some government Big Shot is skimming millions off some government program, there still won't be a good way to prove it.
Saw the price increases coming when I built my AI computer last winter and locked in. Rick’s right but the other factor is going to be, AI data centers in space. Elon says, and I believe him, that within 3 years it will be a no-brainer. Terrestrial data canters might make good indoor pickleball courts.
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