Despite its simplicity, price-performance is not the only metric; this obsession is a typical consequence of extreme overextension of the Friedman doctrine, and it is why so much software and hardware has been qualitatively shitty even when it matters that it’s not. That something can be measured doesn’t automatically make it preferable as a decision-making basis over intangibles.
It’s pretty obvious that local AI has a higher TCO if you look only at money. But there are other things to be considered.