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>Further, those parties make up an ouroboros of funding, where invested funds quickly come back to investors in the form of cloud compute fees. This allows Amaz
by whatshisface 3y ago
>Further, those parties make up an ouroboros of funding, where invested funds quickly come back to investors in the form of cloud compute fees. This allows Amazon, Microsoft, and Google to stomach sky-high valuations for these rounds, as they’re essentially buying marketshare for their cloud offerings. This dynamic is a major barrier standing between you and the latest GPUs.
I don't think cloud compute prices are so far above their costs that this would amount to a huge distinguishing factor.
- agnokapathetic 3y agoBut equities investors value cloud growth for all of these companies, and AI spend is high enough that even if the margin isn't there, the revenue growth will make the street happy.
- whatshisface 3y agoBut isn't that the same kind of sales growth an investor could see if a retail company used investor money to load up trucks with its own shelved goods?
- choppaface 3y agoNot necessarily compute minutes but ancillary costs like egress and especially local block storage. I recently tested a training cluster and these costs were nearly as much as the GPUs. And they’re both extremely high margin as well as lower QoS than what you can get in bare metal.