Given that he was in a fluffy interview at the time, he's not going to say that OpenAI and Anthropic would die, but we all know that -unless the "Pacing The Frontier" garbage succeeds in its goal of creating law and regulations that massively obstruct LLM manufacturers who aren't the four or five currently-largest ones in the US- that's how it'd turn out. Once OpenAI and Anthropic are dead, the VC money pouring into the LLM manufacturing and services industries evaporates, and all that demand for high-speed VRAM vanishes with it.

So, no, switching to locally-hosted software will reduce RAM prices... just not immediately.

isn't communal living the most efficient thing resource-wise though?

It's like a highrise developer saying "people think our buildings take up a lot of land, but actually houses are much worse from a land use perspective". Which is objectively true, and yet does not mean the developer thinks the entire world should be turned into houses, or even that they dislike houses!