OpenAI's recent deployment of their O3 reasoning model into a U.S. National Laboratory as a custom, air-gapped, on-premises solution marks a significant shift in the software industry towards self-hosted AI, emphasizing the need for enterprises to control their data, networking, and compliance within secure environments. This move challenges the traditional SaaS model, where companies like Salesforce and Slack have historically resisted on-premises deployments, by highlighting the demand for AI solutions that can handle sensitive data and proprietary research. The decision by OpenAI to offer self-hosted deployments signals a broader industry shift where enterprises expect not just AI models but also the surrounding ecosystem, including analytics, monitoring, and MLOps tools, to be available for self-hosting. Replicated, a company advocating for flexible software deployment, views this development as a validation of their approach, predicting that the future of software distribution will increasingly cater to secure, on-premises, and air-gapped environments. As the industry adapts, vendors capable of meeting these security and deployment needs are likely to gain the trust of enterprises, while those adhering strictly to cloud-only solutions may find themselves limited to less sensitive applications.