If you own the tracks between San Francisco and Los Angeles, you likely have some kind of monopolistic pricing power, because there can only be so many tracks laid between place A and place B. In the case of GPU data centers, there is much less pricing power. GPU computing is increasingly turning into a commodity, metered per hour. Unlike the CPU cloud, which became an oligopoly, new entrants building dedicated AI clouds continue to flood the market. Without a monopoly or oligopoly, high fixed cost + low marginal cost businesses almost always see prices competed down to marginal cost (e.g., airlines).
Recent articles
- Weeknotes: a livestream, a surprise keynote and progress on Datasette Cloud billing - 2nd July 2024
- Open challenges for AI engineering - 27th June 2024
- Building search-based RAG using Claude, Datasette and Val Town - 21st June 2024
- Weeknotes: Datasette Studio and a whole lot of blogging - 19th June 2024
- Language models on the command-line - 17th June 2024
- A homepage redesign for my blog's 22nd birthday - 12th June 2024