Re:$2 H100s: How the GPU Rental Bubble Burst
by imglorp on Friday October 11, 2024 @09:41AM
(#41809416)
How was DO able to provide what AWS didn't want to? Was it purely margins?
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Re:$2 H100s: How the GPU Rental Bubble Burst
by neom on Friday October 11, 2024 @09:52AM
(#41809499)
AWS just really didn't want to, very different market segment. They were doing a pure enterprise play, looking to capture most of the enterprise. We were doing a b2c play that we presumed over time would suck us up into the SMB. My theory was we had like 1% risk from them. From what I could tell Jeff and Jassy had zero interest in our segment. I left just before the IPO but when we started it, the margin was about 60%, after we figured out how many VMs we could comfortable fit on the box, Ben U just did napkin math and said "50% seems like a fine enough margin to start"