Understanding the Economics of Cloud Computing

Big 3 cloud providers investing in AI with cloud credits. $7 trillion dollar big plans. VCs concerned about AI valuations. It feels like a new set of rules are being created. 

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SHOW NOTES:

• Microsoft invests $10B into OpenAI
• Amazon invests $b in Anthropic
• Google invests $2B in Anthropic
• Cloud GPUs
• Can you trust AI valuations, MANG investments (BG2 Podcast)  
• Big Cloud deploys 1000s of GPU for AI - but revenues should be higher (El Reg) 
• Tracking CAPEX by the big 3 cloud providers
• Sam Altman seeks (up to) $7 trillion for new chip building (and comps)

ARE CLOUD CREDITS THE NEW VENTURE CAPITAL?

• “Microsoft's Q2 2024 earnings report states that AI services contributed 6 percentage points of growth to Azure revenue. This is an increase from 3 percentage points in the previous quarter.” 

KEEP AN EYE ON AI USAGE “TRENDS” FROM THE BIG CLOUD PROVIDERS

• Is this a problem for VCs? 
• Is this “good” revenue for the cloud providers?
• Are they just smart for utilizing an asset that they can monopolize?
• How to track user-growth (e.g. OpenAI) and cloud-usage-growth (e.g. Big 3)
• How much will people invest to build an alternative to NVIDIA?

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