So yea, a tiny model can even run locally (perhaps even on the phone)can solve her use case so the moat for AI companies is close to zero (as expected)

This is what I was trying to say actually, thanks for responding.

That being said, the original point about Americans/Europeans does become a bit moot after this discovery because the fact is, I don't think that most are against small models but rather the SOTA models run in AI centric datacenters which they hate as it actively acts as a tax on them by increasing electricity rates etc. while taking workforce from them

A tiny model on the other doesn't really do all the above. I definitely feel like the concerns of American people are definitely valid for the AI datacenters though so I hope something can be done about it in a timely and helpful manner which brings real help to the average american.