Request Your Free Article Now:

"Databricks CEO Predicts Major Drop in AI Chip Prices"

Stay on top of your AI news through The Information

The Information recently sat down with Databricks CEO Ali Ghodsi for a wide-ranging discussion about the challenges for AI startups in the current funding environment. Ghodsi has a unique perspective on the subject: the company he leads helps companies use AI and is valued at $43 billion.

The discussion took place during turmoil in the AI sector, with Nvidia’s stock on a tear as major technology firms and app developers clamor for the company’s server chips for artificial intelligence, creating severe shortages. But over the next year, prices for these chips, known as graphics processing units, will plummet, throwing a wrench into the business models of numerous major companies and startups, predicts Ghodsi.

Just as internet bandwidth constraints largely evaporated in the 2000s, “the same thing will happen with GPUs,” he said in a conference call with The Information subscribers.

 The Takeaway

• Databricks CEO Ali Ghodsi predicts drop in AI chip prices with supply-demand rebalance over the next year

• Microsoft could face threat if OpenAI stops sharing IP, Ghodsi says

• Open source models approaching state-of-the-art performance, he says

Read the full article for more.

Offered Free by: The Information
See All Resources from: The Information