The Beginning of Scarcity in AI
6 hours ago
- #GPU Shortage
- #Tech Access
- #AI Supply Chain
- GPU rental prices for Nvidia’s Blackwell chips surged 48% in two months, reaching $4.08 per hour, with providers like CoreWeave raising prices and extending contract terms.
- AI companies, including OpenAI, are making tough trade-offs due to compute scarcity, limiting access to state-of-the-art models like Anthropic’s to select organizations.
- Startups face challenges as AI access becomes relationship-based, expensive, and slow, with high demand and fixed supply driving prices up and forcing diversification to smaller models or on-premise solutions.
- The era of abundant AI is over, likely for years, due to supply chain constraints and delays in energy and data center infrastructure catching up.