Meh rookie numbers you give me $250B too and keep doing that every year I will generate revenue $125B revenue easy. I only have to sell a dollar for 50 cents .
Same Amazon to develop AWS to profitable business spent only 30B in all capex (including e-commerce) over 12 years between 2003-15 .
The CFOs he is talking about are the enterprises who are spending big money on the tokens ; they are not seeing RoI ; not hyperscalers or frontier labs
Yep, i can't disclose specific numbers but we went from $X/month/person budgets to $X-100/month recently, and this is a pretty big company with ~5000 people. From what I can tell the pursestrings are only tightening further too, too little actual real-world benefit for the obscene spend
Correct. The people that control the pot of money these labs ultimately need to survive seem increasingly unconvinced that giving these labs money is a good idea. At least at the levels the labs need to not go bankrupt.
Most of it was stopped and some was even recovered but $66Million is still lost 10years later .
In both incidents protection are reliant on the authorities to minimize the damage ; tether and circle able to freeze tokens is not that different from the traditional finance doing it.
Crypto is only reinventing structures that evolved in every financial system over time.
Overtime they are going away from their founding theme of decentralization . Exchanges and stable coin issuers who can freeze wallets and coins are by definition centralization ; it is worse though as these organizations are less transparent than banks with less accountability
And as the stable coin operators and exchanges grow closer with governments and political elites they will add more and more controls in exchange for legitimacy.
Azure (and AWS) offer Gov clouds, and probably on prem air-gapped deployment of their full stack of Fabric for that type of NEED security customers who can pay for it.
It is trade-off between risk and access/productivity with a cost dimension always.
Depending on your threat model you could go to typewriters /paper as some Russian department did famously few years back too.
AWS (and others) have ladders of this was my point. GovCloud is just the one end of the this AWS also regions for Secret and Top Secret work which are reported to be air-gapped. There are probably programs beyond that where the customers are operating the stack fully on their own and so forth.
No, it is famously a pointless internet debate with no settled answer. There is no scientific definition of what can or can't be wet, saying that wetness only applies to surfaces is just an opinion. It's an entirely linguistic question, and most people would say water is wet. If you want more than descriptivism, the common definition is something like 'containing or being covered with liquid', and I think most people would agree that a mass of water contains water.
Not exactly? Options vested is yours to exercise within typically a 60 day[1] window or they expire if you are no longer in the employ of the company.
Exercising your vested options is a taxable event[2] and requires you to upfront some cash to buy the stock depending on what price(and rounds) your options were issued at- this price usually is considerably less than enterprise value of the same share lets say it is $1 and FMV of $100 at the time of issue, however even just $1 for vested 500,000 options is still $500,000 now.
For this simple[4] scenario you need $500,000 immediately to exercise the options into stock before they expire and about ~$13.86M by April to own[5]all stock if ends up say trading at $200 you are worth $100M then.
There are all kinds of funds who would loan you the money or buy the stock off you now on the secondary market, but vested options does not mean owned stock, and selling quickly after exercise is much higher tax under some scenarios.
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[1]Some companies have generous(relatively) terms ex-employees to exercise up-to 5-10years later; but it not default in the industry.
[2] This close to IPO that should be relatively small risk; i.e. if the company pulls IPO you still have to pay tax end of the year; if you exercise them.
[3] NSO/ISOs work quite differently, and options vest monthly in most corps and there are lot of creative structures out there; so cannot say how it would be for ANT employee specifically.
[4] Simple - because there usually more than singe 409A valuation and more than single set of options plan issued and plenty of other complex calculus only a finance expert would advise on.
[5] You could sell the shares to pay the ~14M-ish in tax but that could be disqualifying sale(2 year after grant, 1 year after exercise) for ISO meaning you will need to pay effectively 40M tax on your 100M holdings versus only ~$27M otherwise, so you would a take loan against the shares rather than sell to pay the tax.
Lower models typically use distilled outputs from higher model to improve .
all training runs have to at some level share the compute capacity ; while they have more than enough to run many large runs concurrently, they don’t have enough compute to run everything concurrently.
You can use your preexisting committed spends for GCP on Open AI, i.e. if an enterprise 10M/year contracted spends for first party GCP services, now they can also use that on OAI models hosted on GCP.
Meaning they can swap out compute/storage spends on GCP to LLM model spend or use left over budget ( which would go waste anyway ) and so on . Any OpenAI sales by GCP teams would be considered against their quota typically in this type of arrangement [2]
This is normally not done to third party[1] marketplace services, Azure already does this for OpenAI, it helps drive some enterprise spends as it is from for fungible budgets or different approving authority internally in a org when it is not a new vendor, new budget etc.
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[1] It is not too hard to get into these types of programs i.e. it not only for OpenAI level partners mid sized startups can also be part of these deals in marketplace, the requirement usually is minimum size and the partner having to prove/show that are spending that customer's revenue on the compute etc so money is going back to them, then AWS/Azure/GCP will consider an org for this type of program.
Given that GCP is hosting these models on their cloud and therefore OpenAI is spending a % of every dollar back on GCP for every token sold like this; it wouldn't have been too hard for OpenAI to got such a program even if they were a mid sized startup.
[2] Multiples maybe involved (also used to push some first party products) 1x would 1M in OAI sales counts as 1M in their Qtr/annual targets 0.5x would mean 500k and 5x means 5M quota would be retired for 1M in sales etc.
The way they work, you get a preferred price for various services at a substantial discount to list rate, but you commit to a guaranteed spend level for that period. The guaranteed spend is typically account-wide, but you have to pay a true-up at the end of the period if you fail to hit it.
It's a bit of calculus: will your growth increase enough such that, especially with the discount, you'll reach the minimum?
You can see these agreements littering 10-Qs, or similar, like when Snapchat filed their S-1 and revealed:
>When Snap originally filed for its IPO in 2017, it revealed a massive $2 billion commitment over five years ($400 million annually) with Google Cloud.
Yes; larger discounts with more commits, you also get some price guarantees on SKUs quite valuable these days and other benefits - like say premium support, architecture guidance, access to product teams and so forth.
Self-service retail buyers of cloud have access to some of these price advantages as well, 1-3 Year reservations(even paid monthly) are 40% cheaper of the bat after all. PAYG with fluctuating usage is quite more expensive than committed consumption for cloud.
Is it really gcp hosting openai in their cloud? Afaik is a third party marketplace so it looks like you're buying openai saas via gcp but not hosted in gcp. That's key difference with azure specially for egress costs if your data leaves gcp to openai right?
Yes but does it's not clear for me. It could be just a private interconnect to openai infrastructure. My guess is that is not hosted in gcp... That's why I'm asking
Same Amazon to develop AWS to profitable business spent only 30B in all capex (including e-commerce) over 12 years between 2003-15 .
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