GCP Reddit Mentions | ChartExchange

Jensen is all-in on circular financing and Elon is all-in on wiring compute together he cannot even use himself. Colossus 1 was a cluster and eventually settled out at 11% utilization. It was mostly due that networking even multiple versions of Nvidia equipment was hard and unreliable and prone to switching and network problems. The solution at xAI is to lard like types of GPUs into a simpler network in different buildings these days. That's fine I guess. In the end companies have a mixture of processing and appropriate platforms especially on Cloud infrastructure. Even if it works for 'all things' it is expensive and power hungry on a token basis for inference.
Meanwhile the cloud giants have been pivoting away for years. They already had tackled compute with mixed devices. Alphabet since 2015 and now more than 80% of their AI compute is TPUs. Amazon AWS has reached 50% independence and Microsoft Azure is climbing at 30% with custom ASICs. This chasm only goes one way. They cost less, they make more profit and they use less energy which makes them simpler to plug into their existing datacenter empires and avoid a large subset of the new DataCenter nonsense in the first place. AI has been rolling long enough that the business has likely pivoted to 90% inference anyhow. As the business converges to mostly infrerence, custom ASICs will be the better mousetrap especially on captive clouds where the Fortune 1000 live.
All of this will become obvious when we get better understanding of the massive datacenters in China to serve up tokens. Those will use purpose-built ASICs that serve up tokens to the 95% of the world that sees no need to pay frontier prices.
Companies like ORCL, Nebius and CoreWeave in a loser's game. They will likely get stuck in a mixed network and not perform particularly well. I thnk the goldrush of 'xAI knows how to build'was misunderstood. Colossus 1 was a mix of GPUs poorly networked. Alphabet has no interest in buying more Nvidia equipment on a four year depreciation cycle. They have a near $600B backlog on GCP. They will gladly buy compute at discount to retire the backlog and not get stuck with more GPUs they can never resell at margins comparable to the TPUs. For Amazon and Microsoft the case is even strongerr as their backlogs are even larger! All of them will buy GPUs at the margins but won't get caught holding the bag.
Finally we are left with the frontier models. They have no money and are scooping up compute deals to hype their future value and obscure their cost structure. OpenAI, Anthropic and Meta are ALL CHASING deals to run on Google TPUs. Alphabet built flexible architecture and they can be run outside of the Google DataCenters. They aren't handcuffed like xAI with a big datacenter that runs on a mix of different GPUs at 11% utilization. The short-term deals will be good for xAI at least for now. Elon crowing about 'we are all-in on Nvidia' is an admission they have a very narrow network architecture for the world that needs a mixture of solutions. This only exists today inside the clouds at AWS, Azure & GCP.