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The profit margins of cloud providers are nowhere close to that. GCP and Azure currently lose money for Google and Microsoft, AWS is profitable but their profit

The profit margins of cloud providers are nowhere close to that. GCP and Azure currently lose money for Google and Microsoft, AWS is profitable but their profit margins are absolutely not 100x.

ly3xqhl8g9 4y ago
Microsoft, in this case, is pouring billions into this, and the industry at large, from Alphabet to LAION is in an arms race. They will optimize it beyond belief, x100 is rather low, come to think of it. I fully expect to be able to run your own ChatGPT on one DGX H100 unit (640GB GPU memory) in 18 months or less.
- visarga 4y ago
  > GLM-130B, a model comparable with GPT-3, has 130 billion parameters in FP16 precision, a total of 260G of GPU memory is required to store model weights. The DGX-A100 server has 8 A100s and provides an amount of 320G of GPU memory (640G for 80G A100 version) so it suits GLM-130B well. https://github.com/THUDM/GLM-130B/blob/main/docs/low-resource-inference.md https://github.com/THUDM/GLM-130B/blob/main/docs/low-resourc...
  - ly3xqhl8g9 4y ago
    There is surely lots of room for improvement [1]. [1] "Use GPT-3 incorrectly: reduce costs 40x and increase speed by 5x", https://news.ycombinator.com/item?id=34702349 https://news.ycombinator.com/item?id=34702349
larrybud 4y ago
> GCP and Azure currently lose money for Google and Microsoft 100% not true for Microsoft. Just listen to the most recent earnings call or read the analyst reports. Eg https://www.nasdaq.com/articles/microsoft-nasdaq:msft:-cloud-strength-will-expose-the-stocks-undervaluation https://www.nasdaq.com/articles/microsoft-nasdaq:msft:-cloud... “In fiscal Q2, Microsoft Cloud’s gross profit margin even expanded by about 2% year-over-year to 72%. When you have a business with such high margins growing at 20%+, profitability is set to expand considerably even if revenues in other segments fail to rebound”
- yunohn 4y ago
  > gross Being the key word…

The profit margins of cloud providers are nowhere close to that. GCP and Azure currently lose money for Google and Microsoft, AWS is profitable but their profit margins are absolutely not 100x.

ly3xqhl8g9 4y ago

Microsoft, in this case, is pouring billions into this, and the industry at large, from Alphabet to LAION is in an arms race. They will optimize it beyond belief, x100 is rather low, come to think of it. I fully expect to be able to run your own ChatGPT on one DGX H100 unit (640GB GPU memory) in 18 months or less.

visarga 4y ago
> GLM-130B, a model comparable with GPT-3, has 130 billion parameters in FP16 precision, a total of 260G of GPU memory is required to store model weights. The DGX-A100 server has 8 A100s and provides an amount of 320G of GPU memory (640G for 80G A100 version) so it suits GLM-130B well. https://github.com/THUDM/GLM-130B/blob/main/docs/low-resource-inference.md https://github.com/THUDM/GLM-130B/blob/main/docs/low-resourc...
- ly3xqhl8g9 4y ago
  There is surely lots of room for improvement [1]. [1] "Use GPT-3 incorrectly: reduce costs 40x and increase speed by 5x", https://news.ycombinator.com/item?id=34702349 https://news.ycombinator.com/item?id=34702349

larrybud 4y ago

> GCP and Azure currently lose money for Google and Microsoft 100% not true for Microsoft. Just listen to the most recent earnings call or read the analyst reports. Eg https://www.nasdaq.com/articles/microsoft-nasdaq:msft:-cloud-strength-will-expose-the-stocks-undervaluation https://www.nasdaq.com/articles/microsoft-nasdaq:msft:-cloud... “In fiscal Q2, Microsoft Cloud’s gross profit margin even expanded by about 2% year-over-year to 72%. When you have a business with such high margins growing at 20%+, profitability is set to expand considerably even if revenues in other segments fail to rebound”

yunohn 4y ago
> gross Being the key word…