Compute Economics
Capex versus tokens, utilisation and depreciation, price-performance curves and the cost floor of inference.
5concepts
56flashcards
35minutes of reading
- 01 Concentration, Supply and the Compute Market Why AI compute has an unusual supply structure, what the constraints actually are at each layer, and how that shapes strategy for organisations that only want to buy some.
- 02 Training Versus Inference Spend Why inference dominates the lifetime bill for any successful model, the crossover arithmetic, and how that changes which optimisations are worth doing.