Comments on: You Are Paying The Clouds To Build Better AI Than They Will Rent You

By: Timothy Prickett Morgan

Timothy Prickett Morgan — Thu, 07 Nov 2024 02:02:14 +0000

In reply to Slim Albert. Yes. I will fix. Thanks for the catch. I thought I had done that.

By: Slim Albert

Slim Albert — Wed, 06 Nov 2024 16:38:09 +0000

Great analysis and update (eg. from last Dec. 18)! And with “$250 billion in datacenter infrastructure spending since the GenAI boom started”, just from the big 3, It’s no wonder Lisa Su had to update her TAM slides last month ( https://www.nextplatform.com/2024/10/18/the-world-will-eat-2-trillion-in-ai-servers-ai-will-eat-the-world-right-back/ ). Add to that the (non-cloud-provider) 100,000 to 200,000 GPUs in xAI’s Colossus, and Meta’s seeking to have more than a 1/2 million H100-equivalent GPUs before 2025, including MI3xx (among others), and wow … it’s a definite boom!

(PS.: should the x-axis on the last two plots extend to 2024?)

By: Timothy Prickett Morgan

Timothy Prickett Morgan — Wed, 06 Nov 2024 13:52:06 +0000

In reply to Donna Hartd. I have no idea, but when they actually release their financials and forecasts beyond the preliminaries that came out yesterday, which tell us very little, I will dig into it.

By: Donna Hartd

Donna Hartd — Wed, 06 Nov 2024 04:56:30 +0000

Off topic: What in the world is going on at SuperMicro?? Looks like they’re basically asking for NVidia to cut their Blackwell allocations, I’m sure Big Green would like to have assurance that they’ll get paid for their goods.

By: Eric Olson

Eric Olson — Tue, 05 Nov 2024 18:27:07 +0000

In the past CompuServe sold time on a fleet of 36-bit DECSYSTEM-20s with profits similar to the rentable GPU cluster providers today. Then CPU hardware became plentiful and cheap.

As long as geopolitical forces don’t create even more scarcity, it seems likely that GPU supply will catch up to demand. The difference, as already pointed out, is that Amazon, Google and Microsoft need the same infrastructure for their primary business. Therefore, bankruptcy may not happen after GPU clouds become less profitable.