Understanding the economics of AI factories

As data centers evolve into AI factories, compute has shifted from a cost center to a revenue driver. “Compute is revenue,” said Jensen Huang, co-founder and CEO of NVIDIA. “Without compute, there is no way to generate tokens. Without tokens, there’s no way to...

Nvidia moves into hot market for model routers

Model routing has emerged as a way to keep AI inferencing costs down by examining prompts and directing them to the most appropriate model — for example, the cheapest one able to respond effectively. This means that requests can be handled more efficiently, giving...

Cloud ops is different in a neocloud

Enterprises are taking a serious look at neoclouds, the specialized cloud providers built primarily around AI infrastructure, especially GPUs, high-speed networking, and large-scale compute clusters for model training and inference. Unlike traditional hyperscalers...