Unlocking the Future of AI: A Compute Crunch Ahead
As we step further into the AI era, we’re at a pivotal moment where the demand for computational resources is skyrocketing. Here’s why:
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Token Consumption is Exploding: My journey from 5-10k tokens per day to an estimated 250k marks just how much usage has surged. With 1 billion LLM users globally, many are just beginning their token consumption journey.
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Infrastructure Demand: The explosive growth in AI and LLM usage drives a historic rollout of data centers, with hyperscalers like AWS and Azure investing billions to meet demand.
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Resource Limitations: Despite ambitious capital expenditure (capex) commitments, constraints loom large—especially in DRAM supply and electrical power.
What’s next? Expect:
- Dynamic Pricing: Higher prices during peak demand.
- Efficient Model Development: A shift towards optimizing throughput over just building bigger models.
The landscape is changing rapidly, and understanding the economics of AI will be crucial.
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