AI hardware too expensive? 'Just rent it,' cloud providers say

"This was the case after Jeff Bezos recently said that in the future, no one will own a personal computer. Instead, we will rent computational power from centralized data centers. He likened the coming shift to the historical move from private electric generators to a public utility grid-a metaphor meant to suggest progress and convenience. However, for those of us dependent on everyday technology, such statements highlight the cloud industry's current failings more than its grand ambitions."

"Let's address the reality underpinning this narrative: The AI surge has heightened competition for processors and memory, especially from cloud providers buying unprecedented amounts of hardware for next-gen workloads. This has driven up costs and caused shortages throughout the global tech supply chain. Gamers and PC enthusiasts grumble as graphics cards become collectibles, IT managers shake their heads at rising prices for server components, and small businesses reassess whether upgrading on-prem infrastructure is even realistic."

"When the entities hoarding the hardware tell consumers to just rent computational resources from them, the contradiction should be lost on no one. Frankly, it's a hard pill to swallow. Cloud providers like Amazon use their market power to shape AI innovation and demand, distorting global supply and prices of the hardware they then rent back at a premium."

The AI surge has escalated demand for processors, GPUs, and memory, prompting cloud providers to buy unprecedented quantities of hardware for next-generation workloads. Massive purchases by large providers have driven up costs and created shortages across the global tech supply chain. Gamers, PC enthusiasts, IT managers, and small businesses face higher prices and reduced availability of components. Cloud providers leverage market power to shape AI demand and then rent scarce hardware back to users at a premium. The tension between renting centralized compute and the loss of affordable on-premise options creates a growing consumer dilemma.

Read at InfoWorld