--- title: What Happens to Agentic AI When the Subsidies End? description: A developer with 30 years of experience argues that agentic AI will become cheap over time, citing three factors: a shift toward local open-source models... canonical: https://daily.dev/posts/what-happens-to-agentic-ai-when-the-subsidies-end--tdgvxz4xt twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: What Happens to Agentic AI When the Subsidies End? | daily.dev og:description: A developer with 30 years of experience argues that agentic AI will become cheap over time, citing three factors: a shift toward local open-source models... og:url: https://daily.dev/posts/what-happens-to-agentic-ai-when-the-subsidies-end--tdgvxz4xt og:image: https://api.daily.dev/og/posts/TDGvXZ4Xt.png og:image:alt: What Happens to Agentic AI When the Subsidies End? og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # What Happens to Agentic AI When the Subsidies End? **[Stefan Mischook](https://daily.dev/sources/stefanmischook)** · 5 min read · 2 upvotes · 0 comments ## Summary A developer with 30 years of experience argues that agentic AI will become cheap over time, citing three factors: a shift toward local open-source models (pointing to Apple Silicon and Hugging Face as signals), increasing efficiency of cloud models in token usage, and the historically deflationary nature of technology hardware and compute costs. The author draws analogies to plasma TVs and smartphone compute power to support the view that current high AI costs are temporary and will fall significantly. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### Will agentic AI coding tools stay expensive once current subsidies end? Costs are expected to fall rather than stay high, following the same deflationary pattern seen in other technology markets. Three factors drive this: growing use of local open-source models for heavy lifting instead of paid cloud models, cloud and local models becoming more token-efficient over time, and new tooling built specifically to optimize and reduce token consumption. Today's high prices reflect a temporary land grab for market share, not a permanent baseline. _daily.dev helps developers track how agentic AI pricing and local-model adoption evolve before locking in a tooling strategy._ ### Why are companies like Apple investing heavily in local AI models instead of cloud-based ones? Apple's silicon strategy centers on running AI models locally on-device rather than relying on cloud compute, positioning the company to benefit as local model adoption grows for cost and efficiency reasons. This mirrors a broader industry shift where developers and companies increasingly favor local open-source models for routine heavy-lifting tasks, reserving cloud models for specialized use cases. _developers weighing local versus cloud AI strategies can follow this shift via daily.dev._ ## Similar posts on daily.dev - [Is the Future of AI Local?](https://daily.dev/posts/is-the-future-of-ai-local--xevj3oufc) · Lobsters · 1 upvotes · 0 comments --- Tags: [#open-source](https://daily.dev/tags/open-source), [#agentic-ai](https://daily.dev/tags/agentic-ai) [View this post on daily.dev](https://daily.dev/posts/what-happens-to-agentic-ai-when-the-subsidies-end--tdgvxz4xt) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"What Happens to Agentic AI When the Subsidies End?","url":"https://daily.dev/posts/what-happens-to-agentic-ai-when-the-subsidies-end--tdgvxz4xt","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/what-happens-to-agentic-ai-when-the-subsidies-end--tdgvxz4xt"},"datePublished":"2026-07-16T21:27:48.131Z","dateModified":"2026-09-13T20:41:24.934Z","description":"A developer with 30 years of experience argues that agentic AI will become cheap over time, citing three factors: a shift toward local open-source models...","image":"https://i.ytimg.com/vi/7jpuPjiFRko/sddefault.jpg","thumbnailUrl":"https://i.ytimg.com/vi/7jpuPjiFRko/sddefault.jpg","isAccessibleForFree":true,"articleSection":"Stefan Mischook","inLanguage":"en","publisher":{"@type":"Organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180}},"author":{"@type":"Organization","name":"Stefan Mischook","logo":"https://media.daily.dev/image/upload/s--rL9dJTgI--/f_auto/v1731602107/logos/stefanmischook","url":"https://daily.dev/sources/stefanmischook"},"commentCount":0,"discussionUrl":"https://daily.dev/posts/what-happens-to-agentic-ai-when-the-subsidies-end--tdgvxz4xt","interactionStatistic":[{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":2},{"@type":"InteractionCounter","interactionType":{"@type":"CommentAction"},"userInteractionCount":0}],"keywords":"open-source,agentic-ai","timeRequired":"PT5M","video":{"@type":"VideoObject","name":"What Happens to Agentic AI When the Subsidies End?","description":"A developer with 30 years of experience argues that agentic AI will become cheap over time, citing three factors: a shift toward local open-source models...","thumbnailUrl":"https://i.ytimg.com/vi/7jpuPjiFRko/sddefault.jpg","uploadDate":"2026-07-16T21:27:48.131Z","duration":"PT5M","url":"https://api.daily.dev/r/TDGvXZ4Xt","embedUrl":"https://www.youtube.com/embed/7jpuPjiFRko"}} {"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://daily.dev"},{"@type":"ListItem","position":2,"name":"Stefan Mischook","item":"https://daily.dev/sources/stefanmischook"},{"@type":"ListItem","position":3,"name":"What Happens to Agentic AI When the Subsidies End?"}]} {"@context":"https://schema.org","@type":"FAQPage","@id":"https://daily.dev/posts/what-happens-to-agentic-ai-when-the-subsidies-end--tdgvxz4xt#faq","mainEntity":[{"@type":"Question","name":"Will agentic AI coding tools stay expensive once current subsidies end?","acceptedAnswer":{"@type":"Answer","text":"Costs are expected to fall rather than stay high, following the same deflationary pattern seen in other technology markets. 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