Abstract. Nearby galactic nuclei are observed to be very much dimmer than active galactic nuclei in distant galaxies. The Chandra X-ray Observatory has provided a definitive explanation for why this is so. With its excellent angular resolution, Chandra has imaged hot X-ray-emitting gas close to the gravitational capture radius of a handful of supermassive black holes, including Sgr A * in the nucleus of our own Galaxy. These observations provide direct and reliable estimates of the Bondi mass accretion ratė M Bondi in these nuclei. It is found thatṀ Bondi is significantly below the Eddington mass accretion rate, but this alone does not explain the dimness of the accretion flows. In all the systems observed so far, the accretion luminosity Lacc ≪ 0.1Ṁ Bondi c 2 , which means that the accretion must occur via a radiatively inefficient mode. This conclusion, which was strongly suspected for many years, is now inescapable. Furthermore, if the accretion in these nuclei occurs via either a Bondi flow or an advection-dominated accretion flow, the accreting plasma must be two-temperature at small radii, and the central mass must have an event horizon. Convection, winds and jets may play a role, but observations do not yet permit definite conclusions.