It really seems like we’re going to end up with a choice of doing model inference expensively here in the US or inexpensively in China, and this is going to create a nightmare data sovereignty problem.
Matthew D.
Brief
Matthew D. Green warns that by mid‑2026 the economics of large model inference will bifurcate—costly to run in the US but cheap in China—creating a difficult data sovereignty dilemma as organizations must choose where to route sensitive inference and associated data processing.
Why it matters
Matthew D. Green (tweeted 2026-06-13) claims model inference will be expensive in the US but inexpensive in China
Key details
- He warns this cost split will produce a "nightmare" for data sovereignty, forcing choices about where sensitive inference/data processing occurs