# AI companies pay \~20% of margins to Amazon; data centers sit underutilized

- **Speaker:** Greg Osuri
- **Attribution:** attributed
- **Said:** 2021-01-30
- **Theme:** GPU Economics — https://www.gregosuri.com/predictions/gpu-economics/
- **Source:** The Unstoppable Live Stream w/ Greg Osuri and Brian Fox (Akash Network)
- **Watch at:** 00:08:29 — https://www.youtube.com/watch?v=-Kkj0veGYJU&t=509s
- **Canonical:** https://www.gregosuri.com/predictions/gpu-economics/2021-01-30-ai-companies-pay-20-of-margins-to-amazon-data-cent-regu/
- **Cite as:** Greg Osuri, "AI companies pay \~20% of margins to Amazon; data centers sit underutilized," The Unstoppable Live Stream w/ Greg Osuri and Brian Fox (Akash Network), 30 Jan 2021, 00:08:29. https://www.youtube.com/watch?v=-Kkj0veGYJU&t=509s

## Quote — verbatim

> 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.

## Context — site annotation, not spoken

His core economic argument for Akash in 2021, repeated later citing an a16z report on ML cloud costs hurting startup valuations.