Erik Bernhardsson, founder and CEO of Modal, explains why Modal abandoned off-the-shelf container tools to build custom infrastructure.
Opinion
Bernhardsson: GPU alt-clouds are real estate businesses adding little stack value
“It's like sort of like almost like real estate, right? Like they own sort of, you know, real estate and they rent it out, arguably sort of, you know, we work, you could say, if you want to be, you know, a little cynical, but like not a ton of value, like highe…”
Prediction Not checkable as stated
Bernhardsson: LLM inference compute is shifting toward specialized chips like crypto mining
“I do think it's kind of fascinating how it's like kind of going in the same direction as like crypto mining towards more like specialized hardware.”
Prediction Held up
Bernhardsson: AI inference spend will dominate model training spend long-term
“It's obvious that like in the long run, like inference spend will dominate just for like the obvious reason that like, that's where you make the money, right? Like, you know, when you're training a big model, that's like, you know, you, you're spending a lot o…”
Insight
Bernhardsson: Serverless architecture fits AI workloads better than web backends
“So it's sort of always felt to me like, you know, in, in hindsight, it looks like the right idea, but applied to the wrong problems. And I always like wonder, you know, now, like I'm looking at like what we built at modal. Like I I'm kind of convinced that lik…”
Insight
Bernhardsson: Demands for self-hosting mean the product isn't compelling enough
“One trap that I think a lot of startups fall into is that, you know, you go out and talk to a lot of customers and they sort of insist on, on self-hosting. In my opinion, like, you know, sometimes that's actually like a true, like hard concerns, but in many ca…”
Insight
Bernhardsson: Lower GPU prices increase value of developer AI software
“If GPU prices were to crash, like the relative value of that software actually goes up. So like, I'm not necessarily sure that like a crash in GPU would be bad for us. I think it actually could be great for us because, you know, if GPU prices go down, there's …”