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You're not thinking through the way economics works. If, hypothetically, the thing you wish existed, why wouldn't it be valuable to high-utilization cloud prov
by ethbr1 2mo ago
You're not thinking through the way economics works.
If, hypothetically, the thing you wish existed, why wouldn't it be valuable to high-utilization cloud providers?
And if useful to them, why would it be sold at a lower price than the (extremely high) price those cloud providers can afford to profitably pay?
The only solution to the hardware crunch that eases the cost/access barrier is if there's such a glut of excess supply of newly-commoditized inference hardware that the price craters.
And you've yet to propose a feasible manufacturing scenario through which that would be possible.
- XCSme 2mo agoWell, before AI the RAM prices were cheapest ever, even if cloud providers were still in demand for hosting and cloud computing. I hope the supply will increase at some point, I doubt cloud providers will be able to buy everything, especially if the competition will be high and the price of AI goes down, so there won't be an easy way to make profits by serving models.
- ethbr1 2mo ago> so there won't be an easy way to make profits by serving models That's the only way I see things going, which ultimately comes down to the market losing faith in AI as a profit engine. Which is probably going to take one of (a) OpenAI / Anthropic IPO failing or newly public financials looking bleak or (b) a high-enough profile large AI company failing (unfortunately most of the large enough to shock the market ones have diversified and durable cash generation engines).
- seunosewa 2mo agoUnfortunately?