# GPUs are AI's biggest cost — \~20% of AI companies' margins go to Amazon

- **Speaker:** Greg Osuri
- **Attribution:** attributed
- **Said:** 2021-07-14
- **Theme:** GPU Economics — https://www.gregosuri.com/predictions/gpu-economics/
- **Source:** AKASH NETWORK - DECENTRALISED CLOUD - DEEP DIVE - WITH THE CEO - 2 OF 2 (Crypto Rich)
- **Watch at:** 00:13:25 — https://www.youtube.com/watch?v=mbT06K1zjZc&t=805s
- **Canonical:** https://www.gregosuri.com/predictions/gpu-economics/2021-07-14-gpus-are-ai-s-biggest-cost-20-of-ai-companies-marg-dgv3/
- **Cite as:** Greg Osuri, "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), 14 Jul 2021, 00:13:25. https://www.youtube.com/watch?v=mbT06K1zjZc&t=805s

## Quote — verbatim

> 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.

## Context — site annotation, not spoken

Announcing GPUs as Akash's next big feature in mid-2021, well before the AI boom. Captions garble "Andreessen Horowitz" as "in recent horowitz."