Scribd
Upload
17 views4 pages

Ai 101

The document discusses the critical role of GPUs in AI due to their ability to handle massive parallel processing, contrasting them with CPUs. It highlights NVIDIA's dominance in the market and the challenges of GPU supply, emphasizing the importance of strategic planning for hardware needs. Additionally, it compares cloud and on-premise AI solutions, outlining their respective pros and cons, and suggests a hybrid approach for cost optimization.

Uploaded by

davidkapoor307
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
17 views4 pages

Ai 101

The document discusses the critical role of GPUs in AI due to their ability to handle massive parallel processing, contrasting them with CPUs. It highlights NVIDIA's dominance in the market and the challenges of GPU supply, emphasizing the importance of strategic planning for hardware needs. Additionally, it compares cloud and on-premise AI solutions, outlining their respective pros and cons, and suggests a hybrid approach for cost optimization.

Uploaded by

davidkapoor307
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Computing Power & Infrastructure: The Engine Behind AI

Why GPUs Matter

AI needs massive parallel processing. CPUs handle complex tasks sequentially (4–32 cores),
while GPUs run thousands of simpler tasks simultaneously — ideal for AI training and inference.

Business Impact:

●​ Specialized hardware is essential for performance and cost-efficiency​

●​ GPU availability impacts project feasibility and timelines​

NVIDIA’s Dominance

NVIDIA became essential to AI thanks to:

●​ CUDA tools for easier programming​

●​ Industry-leading chip performance​

●​ Widespread compatibility across AI frameworks​

Supply Challenge:

●​ Chips cost $25K–40K; servers run $200K–400K​

●​ Demand creates long wait times and divides firms into GPU-rich vs. GPU-poor​

Strategic Advice:

●​ Plan hardware needs 6–12 months in advance​

●​ Consider cloud for faster access; evaluate multi-vendor strategies​


Cloud vs. On-Premise AI

Cloud Pros:

●​ No upfront cost, scalable, latest hardware, managed services​

●​ Great for experimentation, global reach, and startups​

Cloud Cons:

●​ Expensive at scale, data transfer costs, vendor lock-in​

On-Premise Pros:

●​ Full control, predictable costs, best for privacy and latency​

●​ Efficient for sustained, high-volume use​

On-Premise Cons:

●​ High initial cost, requires expert teams, less scalable​

Hybrid Approach:​
Start in the cloud, shift core workloads on-premise to optimize costs while keeping peak
capacity in the cloud.
Training vs. Inference: Budget Planning

Training (CapEx):

●​ Costly, one-time model development​

●​ Needs high-end hardware for weeks/months​

●​ Budget: $50K–500K+​

Inference (OpEx):

●​ Ongoing cost, scales with usage​

●​ Cost per interaction: $0.01–0.10+​

For APIs: Pure OpEx; easier to scale.​


Hybrid Strategy: Use cloud for peaks, on-prem for baseline.

Scaling Infrastructure: Why It Gets Expensive

Cost Issues:

●​ Usage scales linearly with cost​

●​ Idle GPUs = wasted expense​

●​ Cooling, electricity = major operational costs​

Technical Hurdles:

1.​ Memory: Large models need multiple GPUs​

2.​ Bandwidth: Data transfer becomes a bottleneck​

3.​ Software: Requires orchestration, fault tolerance​


Cloud Scaling & Cost Optimization

Scaling Tools:

●​ Auto-scaling, spot instances (cheap, variable), reserved capacity​

●​ Multi-cloud to reduce cost and risk​

Optimization Tactics:

1.​ Right-size models: Use smallest effective version​

2.​ Smart scheduling: Run jobs during off-peak hours​

3.​ Technology: Caching, CDNs, efficient model-serving tools​

Examples by Scale

●​ Startup (1K interactions/day): $50–200/month via cloud APIs​

●​ Mid-size (50K/day): $2,500–10K/month; explore dedicated GPU instances​

●​ Enterprise (1M+/day): Cloud = $50K–200K/month; On-prem = $500K+ setup + ops;


Hybrid offers ROI edge

You might also like