Perhaps for some very specific capabilities such as TTS, translation, voice recognition and so on. But for general intelligence models, better hardware just directly allows better models and that doesn't seem to be changing any time soon.
I'm pretty sure that's not linear, so I personally expect the benefits of larger models to diminish. The question is at what point that's the case. I guess a lot of variables play into it, but it is possible that the benefits of running larger models will be too expensive for the little benefit they provide
