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E35: How to Be President, the Future of AI Celebrities, and Training Larger AI Models
"The Riff" with Byrne Hobart and Erik Torenberg
Cost of Building AI Models
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Building new AI models is becoming more expensive due to the costs of hardware, such as GPUs and electricity, along with the expenses of paying personnel to develop the models and handling licensing data. The additional cost of potential lawsuits adds to the high barrier of entry. The high costs of AI model development require a high level of confidence in the model's ability to generate economic value. A recent publication highlights the challenge, suggesting that around $600 billion in AI revenue is required to justify the current run rate based on revenue from Nvidia's data center sales and assumptions about data center and AI company economics.
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