HP management says enterprises shift to hybrid AI as cloud costs rise

• HP management flagged rising AI cloud costs as a driver of hybrid architectures that shift more inference to PCs, workstations, edge devices.
• Local inference cited as improving token economics, lowering latency, reducing security exposure for agentic workflows handling sensitive data.
• Management pointed to growing use of lower-cost open-weight models; noted an estimate that 95% of enterprise AI still uses frontier models.
• Cloud inference expected to remain for the largest, compute-intensive workloads; focus shifting to orchestration across device, edge, cloud.
• Management cited Gartner projecting 20%+ of enterprises run AI locally by 2028; McKinsey sees inference exceeding half of AI workloads by 2030.

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