TLDR Tech / AI
Why compute might get 10x more expensive in coming years
Compute costs may rise 10x as AI labs like Anthropic aim for $1 trillion revenue, driven by increasing margins, rising compute prices, and more spending on inference. Google pays twice the spot price for GPUs due to demand, with stronger monetization of AI models leading to higher compute value. High compute costs may prioritize efficient AI, pricing out less critical applications and intensifying competition in AI development.
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