AI Security

Business Models drive the world, and they’ll drive the world of AI too.

• Gen AI in the enterprise
  • Frontier Model Companies make poor business models
  • Economics of renting GPUs

Gen AI in the enterprise

https://menlovc.com/2024-the-state-of-generative-ai-in-the-enterprise/

Frontier Model Companies make poor business models

https://gist.github.com/idvorkin/f927fe11d15eccc10cbc268ded8c48e4

Economics of renting GPUs

https://gist.github.com/idvorkin/de947e6a88161af8a4ad977d2bc2a0fb

GPU Cloud Economics

• CoreWeave and Lambda are emerging as specialized GPU cloud providers competing with hyperscalers
• $1B initial investment can buy ~16,000 H100 GPUs and related infrastructure
• Rental revenue potential of $5.27B over 4 years based on blended pricing models
• Operating margins of 65-70% possible for GPU cloud providers

Market Players and Investment

• Major allocations to hyperscalers: Microsoft/Meta (150K GPUs each), AWS/Google/Oracle (50K each)
• CoreWeave raised $4.46B total funding, valued at $19B
• Lambda raised $932.2M total funding