Conrad: Incremental GPUs always drive model performance and revenue, unlike CPUs
Evan Conrad · SF Compute: Commoditizing Compute · Apr 11, 2025 · at 3:08
Evan Conrad is the co-founder of SF Compute. He explains why AI scaling laws create fundamentally different customer spending dynamics for GPUs compared to CPUs.
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“Gusto isn't going to make like, you know, five percent more money. They're going to make zero, like literally zero money from every incremental GPU or CPU after a certain point. This is not the case for anyone who is training models. And it's not the case for anyone who's doing test time inference or like inference that has scales at test time. Because, like, you, your scaling laws mean that you may have some diminishing returns but you're, there's always returns. Adding GPUs always means your model does actually get better and that actually does translate into revenue for you.”
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