# A 60%-margin layer cannot be a public utility — everyone pays a cloud tax

- **Speaker:** Greg Osuri
- **Attribution:** attributed
- **Said:** 2025-02-04
- **Theme:** GPU Economics — https://www.gregosuri.com/predictions/gpu-economics/
- **Source:** Akash Network Explained: Everything You Need To Know Before Investing by Founder Greg Osuri (Founder School)
- **Watch at:** 00:05:12 — https://www.youtube.com/watch?v=T43OCZf2LO0&t=312s
- **Canonical:** https://www.gregosuri.com/predictions/gpu-economics/2025-02-04-a-60-margin-layer-cannot-be-a-public-utility-every-agyu/
- **Cite as:** Greg Osuri, "A 60%-margin layer cannot be a public utility — everyone pays a cloud tax," Akash Network Explained: Everything You Need To Know Before Investing by Founder Greg Osuri (Founder School), 4 Feb 2025, 00:05:12. https://www.youtube.com/watch?v=T43OCZf2LO0&t=312s

## Quote — verbatim

> Over 50% of every single penny we spend on online services goes to one of the three cloud providers. All of us pay a cloud tax without knowing who we're paying the tax to... \[AWS\] is alone a trillion dollar business for Amazon, and profit margins are over 60%, and that's not okay — you can't have an \[ab\]normally profitable layer and you call it a public utility... decentralized systems like Akash \[are\] 80% cheaper than what you would otherwise pay on Amazon.

## Context — site annotation, not spoken

Citing Andreessen Horowitz's "Trillion Dollar Paradox" study; margin/utility line is at [00:09:32].