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This is really well said. Getting the whole orchestra together to play music is difficult and if anyone backs out the whole symphony falls out of rhythm.
I also think this calls out there needs more competition for chips and different kinds of chips!
I've seen people on X talk about how this is a signal that demand is not as unconstrained as analysts make the market out to be - but I believe this is a backwards read
Building a NeoCloud, especially a GPUaaS one, is a lot like baking a cake where you need all of the ingredients to come together at once:
1. A viable site with power
2. A customer to offtake the capacity or a backstop agreement to provide contractual support
3. Financing for said equipment
4. Equipment delivery dates that meets customer and site timelines
Financing is the ingredient people underrate. Lenders want a collateral base, and they treat these offtake contracts as something they can securitize (think SaaS ARR-based lending). No contracted demand, no financing
Arrangements like this enable NeoClouds to meet insatiable demand by accessing more financing - this article speaks to that supply-side challenge, not demand weakness
https://t.co/EBiG2MpFOT
Selling compute capacity has become an entirely new business line for many companies
We see that @Meta has declared they're going to sell their compute capacity, allow customers to use models on their platform, and charge per token.
We have @awscloud@Azure@googlecloud@OracleCloud selling a variety of GPU compute, with #awsbedrock offering a bring your own model approach.
We also have the #neocloud @CoreWeave@crusoe@fluidstack@nebiusai@nscale who are building out and selling compute capacity.
The most important thing to notice is that, is that there is competition in the market place. Customers will have options. Innovation will push all the players to become more energy efficient, work with multiple chip manufacturers like @Broadcom, @nvidia, @AMD, and custom silicon like @amazon Trainium and @Google TPUs.
we at @fluidstack are hiring for:
- Production Engineer
- Member of Technical Staff
- Software Engineer
- Product Engineer
- Product Manager
- Community Engagement Lead
- Strategic Transactions
My dms are open and I will respond to every single one of them. Our interview process moves quick. If you think you're the right fit, we'd love to chat!
https://t.co/TrEneQobZS