AI companies pay ~20% of margins to Amazon; data centers sit underutilized
The Unstoppable Live Stream w/ Greg Osuri and Brian Fox (Akash Network)
“Today to run an AI company on the cloud, it’s literally paying 20% of your margins to Amazon… you have this enormous amount of capacity… your utilization rates are significantly low in your data center, north of 85 or so in our conservative estimates — you have underutilized capacity.” — 00:08:29
Context: His core economic argument for Akash in 2021, repeated later citing an a16z report on ML cloud costs hurting startup valuations.