Why does it make sense to bundle buying chips, operating a datacenter etc. with doing due diligence on grant applicants? Why should grant applicants prefer to receive compute credits from your captive neocloud than USD they can spend on any cloud they want—or on non-compute, if the need there is greater?
You might believe future GPU hours are currently underpriced (e.g. maybe we’ll soon develop AI systems that can automate valuable scientific research). In such a scenario, GPU hours would become much more valuable, while standard compute credits (which iiuc are essentially just money designated for computing resources) would not increase in value. Buying the underlying asset directly might be a straightforward way to invest in GPU hours now before their value increases dramatically.
Maybe there are cleverer ways to bet on price of GPU hours dramatically increasing that are conceptually simpler than nvidia share prices increasing, idk.
You’re probably right that operating a data center doesn’t make sense. The initial things that pushed me in that direction were concerns about robustness of the availability of compute and the aim to cut into the supply of frontier chips labs have available to them rather than funge out other cloud compute users, but it’s likely way too much overhead.
I don’t worry about academics preferring to spend on other things, it’s specialization for efficient administration and a clear marketing narrative.
Why does it make sense to bundle buying chips, operating a datacenter etc. with doing due diligence on grant applicants? Why should grant applicants prefer to receive compute credits from your captive neocloud than USD they can spend on any cloud they want—or on non-compute, if the need there is greater?
You might believe future GPU hours are currently underpriced (e.g. maybe we’ll soon develop AI systems that can automate valuable scientific research). In such a scenario, GPU hours would become much more valuable, while standard compute credits (which iiuc are essentially just money designated for computing resources) would not increase in value. Buying the underlying asset directly might be a straightforward way to invest in GPU hours now before their value increases dramatically.
Maybe there are cleverer ways to bet on price of GPU hours dramatically increasing that are conceptually simpler than nvidia share prices increasing, idk.
You’re probably right that operating a data center doesn’t make sense. The initial things that pushed me in that direction were concerns about robustness of the availability of compute and the aim to cut into the supply of frontier chips labs have available to them rather than funge out other cloud compute users, but it’s likely way too much overhead.
I don’t worry about academics preferring to spend on other things, it’s specialization for efficient administration and a clear marketing narrative.