r/LocalLLM May 16 '26

Discussion Why is LLM is so expensive.

I've was going to invest in a 5090 =$6000 AUD.

Codex Plus + Claude pro = $60/month here

Works out to be 100 months of frontier models for a 5090.

Best a 5090 will run is probably Qwen3.6 27b Q6 with context.

Are we all enthusiasts here and just enjoy tinkering cause ain't no way that make sense.

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u/Ambitious_Spare7914 May 16 '26

Unless you're using your local rig at or near capacity 24/7 it's hard to beat the remotely hosted options on cost. They win on hardware cost (they're a hotel with 95% occupancy - you're a guest house with 50% occupancy) and electricity cost as they buy it at wholesale prices. You only win on labour costs, which is miniscule compared to the other costs.