4 ms·
Are you taking into account they are also paying far below market costs for compute or even what a large customer could negotiate?
by scarface_74 3y ago
Are you taking into account they are also paying far below market costs for compute or even what a large customer could negotiate?
- Grimblewald 3y agoSo because their costs are lower than that of competitors, customers should pay more? Ok.
- scarface_74 3y agoThere costs are lower…for now. Do you think Microsoft is going to subsidize them forever?
- lumost 3y agoGPUs will be cheaper later. GPUs have still been tracking Moore's law, enterprise GPUs went from a niche product to being the hottest enterprise hardware overnight. Margins on H200's are massive from what I understand. I would bet that we'll see massive competition in the hardware space from AMD, NVDA, MSFT, AMZN, and GOOG + startups. We're likely to see an 8-16x reduction in hardware costs over the next decade. That's about enough to shrink the current GPT-4 inference endpoints to a laptop/desktop sized hardware footprint.
- PeterStuer 3y agoCan you provide a source for this? Since it is MS providing the compute for equity, they would not have an incentive to discount.