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Interesting to note that AWS has been working on their own custom silicon, such as the announced Arm based AWS Graviton powered machines.

We will most likely see a continued divergence between "consumer silicon" which is designed for speed in a single tenant environment on your local desktop or laptop, and "cloud silicon" which is optimized to protect virtualization, be power efficient, etc. I'd predict that this will actually lead to increased efficiency and lower prices of cloud resources rather than the "death by a 1000 cuts" that you are proposing.

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