📈 Data to start your week: AI boom, nowhere near the ceiling
Most of the demand hasn’t arrived yet
Hi all,
As we wrote three months ago, we are in the midst of a compute crunch – demand is running ahead of supply and our position has stayed the same:
The real risk isn’t that we’ve invested too much in AI. It’s that we haven’t invested nearly enough.
Today’s quick look at the data shows that much of the supply remains latent, waiting on enterprise funding. When firms start spending serious money, the compute crunch will get crunchier.
On the supply side:
Nvidia B200 GPU rental prices grew 114% in six weeks. Frontier model releases pull demand toward the newest chips; the premium customers pay per hour to get a B200 instead of an H200 has grown by more than 6x.
Infrastructure provider Lightning AI says that some forty of its customers are seeking 400,000 GPUs, ten times the current fleet of 40,000. Providers are already rationing GPUs by customer size. Microsoft now requires Blackwell customers to lock in at least 1,000 chips for a year and is cutting off smaller customers whose servers sit idle.