Not only are they the only future worth living in, incentives are aligned with client-side AI. For governments and government contractors, plumbing confidential information through a network isn't an option, let alone spewing it across the internet. It's a non-starter, regardless of the productivity bumps stuff like Copilot can provide. The only solution is to put AI compute on a cleared individual's work computer.
Sneakernets are pervasive in environments that handle classified information. If something like that gets moved through a network, it's rarely leaving one physical room unless there's some seriously exotic hardware involved - "general dynamics MLS" is a great search prompt if you're curious what that looks like.