Derek Thompson argues doubling cloud GPU rental prices disprove claims of a popping AI bubble
H100 and B200 rental rates doubled over four months.
#175Ethan Mollick@EMOLLICKWe aren’t going to do this again so quickly, are we?
Rising demand results in higher costs. Higher costs result in lower demand. It is almost like some sort of equilibrium is being achieved.
But there is no indication I see that companies are finding AI less valuable over time.
Derek Thompson@DKThompWe're getting another round of THE AI BUBBLE IS POPPING stories, with the news about Uber/Microsoft pulling back on AI subscriptions bc their agent costs went crazy. Maybe. But, per below, GPU rental prices are still up 2x from where they were four months ago. It doesn't seem like demand is slowing down, at all. When, eg, NYC hotel prices are twice as high as they were last year, you shouldn't believe people telling you that nobody is going to NYC anymore. Maybe someone smarter than me can correct me on this logic, but if the price for accessing AI compute is skyrocketing, that's because demand is still significantly outrunning supply, which sounds to me like the opposite of the beginning of the end of a bubble.