Very clearly, all free LLM chatbots will need to be supported by ads. There is no other way to make them free in a large scale.

Government funding is another way. In some countries people pay some sort of "media" tax. That can be redistributed. A new one can be added. If LLMs are becoming a standard way to interact and process the data and using them is a social necessity then it is absolutely the job of the state to provide means for it.

I think it’s very unwise to bet against the advancement of technology.

> Will we shift towards slower/worse LLMs running locally?

Bet on faster/better LLMs running locally and invest/brace yourself for recession accordingly.