It'll become easier and more affordable to distill/train/optimize smaller local models to meet your specific work needs. Multi-agent efforts will orchestrate the balance between using on-prem hardware for most tasks, and then defer to cloud models for more demanding/edge-case tasks. Especially if an organization can manage what data is shared with which model, and most of their user base are everyday casual users.
I also expect cloud providers to eventually start charging different rates for on-peak and off-peak usage, which would incentivize running what you can with the local compute you have otherwise sitting idle across dozens to hundreds to thousands of machines in your fleet.
Anthropic just changed their policy to invalidate any unused credits without refund if you buy your API credits annually. I see that as a sign of unpredictable budgets for cloud models for customers.
I could be wrong and all your future hardware purchases for end-users will be thin clients, without the local processing capabilities of today's laptops and towers. I don't see the hardware manufacturers profiting much from that, but maybe we'll see more companies like AMD declaring they prioritize cloud compute customers over everything else.
With a hardware refresh for cloud computing every 3-5 years, we'll likely see today's compute hardware driving Opus and Sol available on the secondary market for companies willing to build more on-prem capabilities.