GPUs are AI's biggest cost — ~20% of AI companies' margins go to Amazon
AKASH NETWORK - DECENTRALISED CLOUD - DEEP DIVE - WITH THE CEO - 2 OF 2 (Crypto Rich)
“A big feature that’s upcoming is GPUs. For us, GPUs are one of the most exciting things for me, because today the biggest cost for AI is GPUs. Andreessen Horowitz even wrote an amazing article recently looking at their portfolio companies… this GPU cost, which is about 20% of margins — so 20% of the money, either investment or revenue, these AI companies make goes to Amazon, which is a lot.” — 00:13:25
Context: Announcing GPUs as Akash’s next big feature in mid-2021, well before the AI boom. Captions garble “Andreessen Horowitz” as “in recent horowitz.”