Episode

SF Compute: Commoditizing Compute to solve the GPU Bubble forever

Podcast
Latent Space: The AI Engineer Podcast
Published
Apr 11, 2025
Duration seconds
4321
Processing state
processed
Canonical source
https://www.latent.space/p/sfcompute
Audio
https://api.substack.com/feed/podcast/160956446/0e916bdb91f24e33561bffa51f5bc611.mp3
JSON
/v1/public/podcasts/latent-space-ai-engineer/episodes/sf-compute-commoditizing-compute-to-solve-the-gpu-bubble-forever
Markdown
/podcast/latent-space-ai-engineer/sf-compute-commoditizing-compute-to-solve-the-gpu-bubble-forever.md

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Summary

We are calling for the world’s best AI Engineer talks for AI Architects, /r/localLlama, Model Context Protocol (MCP), GraphRAG, AI in Action, Evals, Agent Reliability, Reasoning and RL, Retrieval/Search/RecSys , Security, Infrastructure, Generative Media, AI Design & Novel AI UX, AI Product Management, Autonomy, Robotics, and Embodied Agents, Computer-Using Agents (CUA), SWE Agents, Vibe Coding, Voice, Sales/Support Agents at AIEWF 2025 ! Fill out the 2025 State of AI Eng survey for $250 in Amazon cards and see you from Jun 3-5 in SF! Coreweave’s now-successful IPO has led to a lot of questions about the GPU Neocloud market, which Dylan Patel has written extensively about on SemiAnalysis . Understanding markets requires an interesting mix of technical and financial expertise, so this will be a different kind of episode than our usual LS domain. When we first published $2 H100s: How the GPU Rental Bubble Burst , we got 2 kinds of reactions on Hacker News : * “Ah, now the AI bubble is imploding!” * “Duh, this is how it works in every GPU cycle, are you new here?” We don’t think either reaction is quite right. Specifically, it is not normal for the prices of one of the world’s most important resources right now to swing from $1 to $8 per hour based on drastically inelastic demand AND supply curves - from 3 year lock-in contracts to stupendously competitive over-ordering dynamics for NVIDIA allocations — especially with increasing baseline compute needed for even the simplest academic ML research and for new AI startups getting off the ground. We’re fortunate today to have Evan Conrad, CEO of SFCompute , one of the most exciting GPU marketplace startups, talk us through his theory of the economics of GPU markets, and why he thinks CoreWeave and Modal are well positioned, b…