AI’s capacity crunch: Latency risk, escalating costs, and the coming surge-pricing breakpoint
The latest big headline in AI isn’t model size or multimodality — it’s the capacity crunch. At VentureBeat’s latest AI Impact stop in NYC, Val Bercovici, chief AI officer at WEKA, joined Matt Marshall, VentureBeat CEO, to discuss what it really takes to scale AI amid rising latency, cloud lock-in, and runaway costs.Those forces, Bercovici argued, are pushing AI toward its own version of surge pricing. Uber famously introduced surge pricing, bringing real-time market rates to ridesharing for the first time. Now, Bercovici argued, AI is headed toward the same economic reckoning — especially for inference — when the focus turns to profitability."We don't have real market rates today. We have subsidized rates. That’s been necessary to enable a lot of the innovation that [...]
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