![]() ![]() opportunities and openings for competition. Regulators are hoping that they can keep up, and not leave the giants in charge, imposing their terms on smaller companies. "But after training, a company will be able to get their model back for real AI application" and the dependence on the cloud giants will hopefully be reduced, he added. His company, like many others in the sector, helps companies optimize cloud technology to reduce expenses. "AI training, GPT training will become a very important cloud service going forward," said Spectro Cloud CEO Tenry Fu. Piling up profit at the company founded by Bill Gates can only mean passing on the cost of AI to customers.įrom Main Street to Fortune 500, the dependency on the AI-amped will be an expensive one and companies and investors are drumming up alternatives to at least reduce the bill. "We will charge for those AI capabilities, and then ultimately, we'll deliver operating profit," she said. ![]() Microsoft acknowledges the risk, but insists that on AI, it must "lead this wave," CFO Amy Hood told analysts this month. Microsoft CEO Satya Nadella insists that generative AI is "moving fast in the right direction."ĭeeply respected on Wall Street, Nadella will have a six- or nine-month grace period to show his bet is a winner, Ives predicted. Microsoft's signature cloud offer is Azure and some observers believe the giant's all-in bet on AI is really about protecting Azure success and guaranteeing the cash cow's future.Īzure has been the giant's unsexy bread-winner for years, bringing in huge profits but without attracting the headlines of an iPhone or social media that go straight to the consumer.įor Microsoft, "the golden goose is monetizing cloud with Azure because we're talking about what could be a $20, $30, $40 billion opportunity annually down the road if the AI bet is successful," said Dan Ives of Wedbush Securities. Sigg compares cloud costs to electricity bills and says companies that don't know better are in for "a big surprise" if they let their engineers run up bills in the mad rush to build tech, including AI. ![]() The unpredictable costs of cloud computing, "is a heavily underestimated problem for many companies," said Stefan Sigg, Chief Product Officer at Software AG, which develops software for businesses. ![]() The answer is pretty much no one and in tech, if you can't build the infrastructure, you rent it and that is what companies already do massively by outsourcing their computing needs to Microsoft, Google and Amazon's AWS.Īnd with the advent of generative AI, this dependency on cloud computing and tech giants deepens, leaving the same players in the driver's seat, experts warned. "How many companies can actually afford to go out and buy 10,000 Nvidia H100 systems that go for tens of thousands of dollars a piece?" asked Gold. And training those models can cost tens of millions of dollars," said Jack Gold, an independent analyst. "People don't realize that to do a significant amount of AI things like ChatGPT takes huge amounts of processing power. And when Microsoft, which poured billions of dollars in investment into OpenAI, is asked about how much its AI adventure will cost, the company answers with assurances that it is keeping an eye on its bottom line.īuilding something even near the scale of what OpenAI, Microsoft or Google have on offer would require an eye-watering investment on state-of-the-art chips and recruiting prize-winning researchers. ![]()
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