# 20% of AI company margins go to the cloud

- **Speaker:** Greg Osuri
- **Attribution:** attributed
- **Said:** 2021-03-16
- **Theme:** GPU Economics — https://www.gregosuri.com/predictions/gpu-economics/
- **Source:** Greg Osuri, CEO of Akash Network, Decentralized Cloud \| Blockchain Interviews (InvestmentPitch Media)
- **Watch at:** 00:05:43 — https://www.youtube.com/watch?v=wAAHMYBOBSo&t=343s
- **Canonical:** https://www.gregosuri.com/predictions/gpu-economics/2021-03-16-20-of-ai-company-margins-go-to-the-cloud-6yge/
- **Cite as:** Greg Osuri, "20% of AI company margins go to the cloud," Greg Osuri, CEO of Akash Network, Decentralized Cloud \| Blockchain Interviews (InvestmentPitch Media), 16 Mar 2021, 00:05:43. https://www.youtube.com/watch?v=wAAHMYBOBSo&t=343s

## Quote — verbatim

> The most attractive area for us to focus is machine learning... because that segment is currently suffering with the immense cost problem... \[an Andreessen Horowitz\] report recently... stated essentially 20 \[percent\] of margins tend to go to the cloud. It's extremely hard being a growth stage AI company that's trying to survive in this increasingly prohibitive layer called cloud.

## Context — site annotation, not spoken

Captions garble "Andreessen Horowitz" as "and do some horrible throwing"; refers to a16z's "The Cost of Cloud" analysis. Stated as reason ML is Akash's next market.