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It’s basically impossible to compete on economic terms with deeply subsidized hardware that is widely available to rent or as a service with zero commitment. F
by kphorn 1mo ago
It’s basically impossible to compete on economic terms with deeply subsidized hardware that is widely available to rent or as a service with zero commitment.
For general inference there’s no ROI that makes this work vs subscriptions.
25k for computer now, plus 9-10% sales tax, plus operating cost, plus time and cost for R&D tinkering with models, harnesses, and infra (assuming highly capable engineering talent that can get paid for your human inference) vs a HEAVILY subsidized subscription at 200 per month with free R&D has a pretty long ROI (15 years?)
At API costs, it’s like 6 months if you’re heavy on inference.
For training, specialized models will have their own ROI that makes this worthwhile. Then debate renting capacity and the platform to choose
- jbs789 1mo agoYeah I think you call out the right incentives. Lots of people are very interested in renting out the hardware, and it gives us lots of flexibility vs buying. If the pace of hardware change is what the jensens of the world say, then the rents on existing hardware will decline.