alt Hacker NewsIsn’t that a bit like saying: storage is commodity and thus profit margins will be/should be low.
All major cloud providers have high profit margins in the range of 30-40%.
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kupopuffs • yesterday at 9:37 PM
this is slightly more nuanced, since the AI portion is not making money. it's their side hustle
Storage doesn't require the same capex/upfront investment to get that margin.
How much does it cost to train a cutting edge LLM? Those costs need to be factored into the margin from inferencing.
Buying hard drives and slotting them in also has capex associated with it, but far less in total, I'd guess.