Is The future of local LLM a thought chain of +100k token?

As we've seen with Qwen 2.5/3 (or recent reasoning models), the "thinking" feature is extremely important. It compensates for parameter size simply by giving the model more time to compute. However, it's currently very inconvenient: complex tasks either take all night or require capping thinking tokens, which reduces answer quality.
With its recent acquisition, AMD potentially has the ability to hardwire an LLM directly onto silicon, making these chips ridiculously efficient. In their demo, a €200 device produced 17,000 decode tps, compared to an H200 reaching only ~130 tps (we all know this benchmark was cherry-picked, but the point stands).
Think about it: an entire night's work (~8 hours at 50 tps, or roughly 1.5M tokens) could be finished in just 90 seconds. This makes massive, extremely detailed chains of thought practically viable. Furthermore, this was achieved without speculative decoding (as far as I know), meaning 30k+ tps isn't out of the question.
Possible Cons:
VRAM/SRAM Bottlenecks: As always, memory is the issue (specifically SRAM in this case). Allocating KV cache on these chips remains expensive, so you can't easily slap millions of tokens of context memory onto them.
Cost Scenarios: Imagine memory production scales up and costs drop to SSD-like levels. €100 worth of memory (1 TB) could hold roughly 7.8M tokens at FP16—assuming no further KV cache compression techniques emerge. The entire unit would cost around €300 (€200 base chip + €100 memory).(i know this is actually good but still )
Business Model Shift: This could push manufacturers toward selling models "baked" directly into dedicated hardware. Instead of upgrading software, you’d have to buy a brand new card every time a better model comes out.
Alternative Use Cases:
Companies could use these dedicated ASICs to finally turn API inference into a highly profitable business. A single card could easily serve 100+ concurrent users at ~170 tps each, driving operational costs down dramatically.

Things worth knowing:
1 I know this text is based on a world of sunshine and rainbows but I like to think that way on some aspects

2 the text while originally written by hand on english has been modified by ai (from “things worth knowing” upwards ) due to english not being my mother language and a problem i always had with text structure so i figured out that it would be better this way but i be happy to share the og if someone want it

4 this is my first “serious “post so take it into account ( I’ll be happy to take any kind of respectful criticism of any kind that’s why I post it )

5 feel free to respost it anywhere as long as I know it so i can read the comments

6 I’ll be answering everything I can

7 thanks for reading this I’m very grateful you used your time to read my thoughts and hopefully letting me know yours