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Which (potentially) draws compute spend from Microsoft Azure to Google Cloud.

• verdverm 3y ago
  I should have quoted the generalized middle statement I was responding to > AI is all about how much compute dollars it can generate for the cloud providers. If the providers wanted to extract more money they would not create custom hardware which reduces overall costs and prices to users. I would argue that this is actually more about ensuring NVidia doesn't have a monopoly on hardware and alleviates us from having to pay for Nvidia profits through our cloud providers. Azure is going down the same path here: https://www.theverge.com/2023/11/15/23960345/microsoft-cpu-gpu-ai-chips-azure-maia-cobalt-specifications-cloud-infrastructure https://www.theverge.com/2023/11/15/23960345/microsoft-cpu-g...
  • qeternity 3y ago
    > If the providers wanted to extract more money they would not create custom hardware which reduces overall costs and prices to users. Extracting money is about margins, not revenues. If they reduce your costs (and their revenue) by 20% with a TPU, but they can produce TPUs for 50% less than buying gear from Nvidia, it's still a profitable move.
    • verdverm 3y ago
      Exactly, if I end up paying less and the cloud also makes more money, seems like a win for everyone The "extracting" word typically comes with abusive connotations when used in the context of money, which doesn't feel like the right word for the win-win outcomes imho