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Sharing what the Cloud Providers don't want you to know. Tips on negotiating your cloud deal & optimizing your environment. Also post the best cloud memes 🤝
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Joined January 2024
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The irony of people setting New Years Resolutions to drink less only to start the year with a debilitating hangover
$1 Trillion in CAPEX for hyper-personalized slop
Claude's limits are actually dogshit
It's so clear they're trying to get profitable ASAP
We already know their AWS costs are >100% of revenue today
But at least try and disguise these weak limits
If only there was someone who tried to warn you all about this
Exclusive: Microsoft leaders worried that meeting OpenAI’s rapidly escalating compute demands could lead to overbuilding servers that might not generate a financial return. Learn more: thein.fo/3KR94Yc
Here’s the full post
Why Microsoft & OpenAI's re-negotiation is more important than people realize
>Microsoft & OpenAI re-negotiate partnership
>Microsoft now has first right of refusal on providing OAI new capacity
>Microsoft no longer required to subsidize unlimited GPUs compute
>Stargate fills in to meet OAI demand and needs
>SoftBank steps in to fund up to $40B
>OpenAI projects losses may expand up to $20B in 2027
Microsoft just dodged the bullet of being permanently tied to OpenAI's capacity growth
They now will continue to benefit from overall partnership while outsourcing the CAPEX
It's not because Satya is now bearish on the AI Arms Race, it no longer made financial sense because this will not be a "winner take all market"
With Open Source and model competition and diversity, it's the end customers choice.
I am calling it right now, SoftBank will get caught holding the bag on trying to support OpenAI's endless compute growth
Every company I work with I continue to see this
Maybe Dario was onto something
Who knows more about AI and the threat to the industry?
Morgan Stanley or Adobe
Basically ignore this and Adobe will do fine
If you think OpenAI is somehow going to make it out the other end profitable, I have a bridge to sell you
The scale of the data center built today has reached unprecedented levels. Since 2010, when Azure was first commercially available, until the launch of ChatGPT in 2022, $MSFT has spent $124.2B in Total CapEx as a company (not just data center).
Today, we are talking about a single AI research company spending $MSFT's entire 12-year total CapEx in one year.
I work with customers every day and talk about this problem
The issue is the IT organization wants to build some pet project use cases rather than fully understand what the business units are actually trying to solve
Plus, 95% of organizations don’t even track their success metrics today. How are they supposed to even get value realization if they can’t measure anything meaningful?
