a16z Podcast Chasing Silicon: The Race for GPUs
47 snips
Aug 2, 2023 
Guido Appenzeller, a seasoned infrastructure expert and former CTO at Intel’s data center group, discusses the soaring demand for AI hardware. He highlights the significant supply challenges in GPU production and the competitive strategies companies are using to secure compute resources. The conversation navigates the decision-making process between cloud services and in-house infrastructure, emphasizing the role of open source and the increasing importance of data efficiency. Expect insights on future AI model trends and the cost implications of compute.
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AI Hardware Shortage
- AI chip and server demand currently exceeds supply, causing challenges for companies.
- This is largely due to the unexpected exponential growth of AI, creating bottlenecks in chip manufacturing and server assembly.
Chip Production Bottlenecks
- Increasing chip production isn't simple due to foundry capacity constraints and long lead times for fab construction.
- Building a new fab can take years and billions of dollars, hindering rapid supply increases.
Accessing Scarce Hardware
- To access scarce AI hardware, founders should consider pre-reserving capacity through negotiations and long-term commitments with cloud providers.
- Explore partnerships and investment deals that can grant access to hardware in exchange for time or equity.