You Are Paying The Clouds To Build Better AI Than They Will Rent You
TheNextPlatform, Tuesday, November 5th, 2024
Think of it as the ultimate offload model.
One of the geniuses of the cloud - perhaps the central genius - is that a big company that would have a large IT budget, perhaps on the order of hundreds of millions of dollars per year, and that has a certain amount of expertise creates a much, much larger IT organization with billions of dollars - and with AI now tens of billions of dollars - in investments and rents out the vast majority of that capacity to third parties, who essentially allow that original cloud builder to get their own IT operations for close to free.
The IT shop of that original company, be it the Amazon online retailer, the Microsoft software creation and distribution business, and the Google search engine and online advertising business, turns what was a cpost center into a revenue stream and a profit pool.