# ML companies pay \~20% of their margins to Amazon

- **Speaker:** Greg Osuri
- **Attribution:** attributed
- **Said:** 2021-05-12
- **Theme:** Cloud Decentralization — https://www.gregosuri.com/predictions/cloud-decentralization/
- **Source:** "Base Layer Episode 209: Greg Osuri, Founder of Akash Network on Decentralizing Compute" (Base Layer)
- **Watch at:** 00:11:46 — https://podcasts.apple.com/us/podcast/base-layer-episode-209-greg-osuri-founder-of-akash/id1445373535?i=1000521492647
- **Canonical:** https://www.gregosuri.com/predictions/cloud-decentralization/2021-05-12-ml-companies-pay-20-of-their-margins-to-amazon-bsm3/
- **Cite as:** Greg Osuri, "ML companies pay \~20% of their margins to Amazon," "Base Layer Episode 209: Greg Osuri, Founder of Akash Network on Decentralizing Compute" (Base Layer), 12 May 2021, 00:11:46. https://podcasts.apple.com/us/podcast/base-layer-episode-209-greg-osuri-founder-of-akash/id1445373535?i=1000521492647

## Quote — verbatim

> Machine learning companies today — Andreessen Horowitz came out the report recently, which is very fascinating... they said about 20% of their margins are actually paid out to Amazon. And this is a very cutthroat business, right? It's almost like making these businesses unsustainable to a degree.

## Context — site annotation, not spoken

Part of his "Amazon tax" argument (a16z's "The New Business of AI" post); the setup quote about the "burgers and fries" lock-in model is in the 00:10:58 block.