ROI in the space is not complicated, their revenue is already insane. You just drive down costs with fixed capex (GPUs), that will continue to pay out over 5-10 years. These are growing pains, they need to make it past the GPU scarcity/ramp up phase.
The CFOs he is talking about are the enterprises who are spending big money on the tokens ; they are not seeing RoI ; not hyperscalers or frontier labs
Yep, i can't disclose specific numbers but we went from $X/month/person budgets to $X-100/month recently, and this is a pretty big company with ~5000 people. From what I can tell the pursestrings are only tightening further too, too little actual real-world benefit for the obscene spend
Correct. The people that control the pot of money these labs ultimately need to survive seem increasingly unconvinced that giving these labs money is a good idea. At least at the levels the labs need to not go bankrupt.
Reports indicate GPUs are increasingly being put on shelves in warehouses. There’s a scarcity of power and data centers to host them, but data increasingly suggests the world has an over supply of chips at the moment.
Like most “scarcity” scenarios things flip from under supply to massive oversupply real quick. Remember during COVID when lumber got stupidly expensive and then almost overnight folks couldn’t give wood away.
If everyone is using AI the ROI could just keeping up with everyone else. If anything Intelligence is now becoming a tax or the cost to use the toll road.
ROI in the space is not complicated, their revenue is already insane. You just drive down costs with fixed capex (GPUs), that will continue to pay out over 5-10 years. These are growing pains, they need to make it past the GPU scarcity/ramp up phase.
The CFOs he is talking about are the enterprises who are spending big money on the tokens ; they are not seeing RoI ; not hyperscalers or frontier labs
Yep, i can't disclose specific numbers but we went from $X/month/person budgets to $X-100/month recently, and this is a pretty big company with ~5000 people. From what I can tell the pursestrings are only tightening further too, too little actual real-world benefit for the obscene spend
% would be helpful, is it -1% or -100% per month per person?
Correct. The people that control the pot of money these labs ultimately need to survive seem increasingly unconvinced that giving these labs money is a good idea. At least at the levels the labs need to not go bankrupt.
What GPU scarcity? Unconnected GPUs are being hoarded by the oligarchy:
https://www.businessinsider.com/companies-hoarding-unused-ai...
Reports indicate GPUs are increasingly being put on shelves in warehouses. There’s a scarcity of power and data centers to host them, but data increasingly suggests the world has an over supply of chips at the moment.
Like most “scarcity” scenarios things flip from under supply to massive oversupply real quick. Remember during COVID when lumber got stupidly expensive and then almost overnight folks couldn’t give wood away.
If everyone is using AI the ROI could just keeping up with everyone else. If anything Intelligence is now becoming a tax or the cost to use the toll road.