The circular financing angle is what people keep missing. Microsoft invests in OpenAI, OpenAI spends it on Azure, Azure revenue goes up, Microsoft stock goes up. Rinse. What caught my eye from the consumer side is how this trickles down to inference pricing. Three providers raised prices in February and the backlash was aimed at the wrong targets entirely. Covered that here: https://sulat.com/p/the-real-cost-of-cheap-ai-inference
Tough when many in an industry decide "scaling" becomes the "solution to all problems".. although.. any industry can impact an economy at such a scale it eventually (perhaps?) becomes "too big to fail"😏
https://substack.com/@interestingengineering/note/c-172132950?r=223m94
https://openai.com/index/openai-and-broadcom-announce-strategic-collaboration/
The circular financing angle is what people keep missing. Microsoft invests in OpenAI, OpenAI spends it on Azure, Azure revenue goes up, Microsoft stock goes up. Rinse. What caught my eye from the consumer side is how this trickles down to inference pricing. Three providers raised prices in February and the backlash was aimed at the wrong targets entirely. Covered that here: https://sulat.com/p/the-real-cost-of-cheap-ai-inference
Tough when many in an industry decide "scaling" becomes the "solution to all problems".. although.. any industry can impact an economy at such a scale it eventually (perhaps?) becomes "too big to fail"😏