VCs Subsidizing AI Inference Will Not See Their Expected Returns
Erik Bernhardsson · Truly Serverless Infra for AI Engineers - with Erik Bernhardsson of Modal · Feb 19, 2024 · at 50:15
Erik Bernhardsson, CEO of Modal, compares current VC subsidies in GPU computing and LLM inference to the late-1990s fiber optics bubble.
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“In the end, like, I don't think VCs will have the return they expected. Like, you know, in these things, but guess who's going to benefit? Like, you know, it's the consumers, right? Like someone's like reaping that the value of this. And that's, I think an amazing flip side is that, you know, we should be very grateful, you know, the fact that like visas want to subsidize these things which is, you know, like you go back to fiber optics, like there's the extreme, like over investment in fiber optics network in the 99, like 98, and no one made money who did that. But consumers, you know, got tremendous benefits”
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