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I don’t think these companies have a lot of power to increase prices due to the very strong competition. I think it’s more likely that they will become profitable by significantly cutting costs and capital expenditures in the long run.

Models are becoming more efficient. Lots of capacity is coming online, and will eventually meet the global needs. Hardware is getting better and with more competition, probably will become cheaper.

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There is no strong competition, there’s probably 4 or 5 companies around the world that have the capacity to actually have data centres big enough to serve traffic at scale. The rest are just wrappers.

Are rack servers and GPUs no longer manufactured?

And if they jack up their prices, then it’s a greater incentive for other players to build their own capacity.

This really isn’t that hard of a concept. There is no barrier other than access to capital. Nvidia and Dell will sell to anybody.

The major players will always be competing not only with each other, but also the possibility that customers will invest in their own hardware.

Then you wonder if AI, like DropBox, will become just an OS feature and not an end unto itself.

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