I don’t think companies will do that. Why don’t they just buy local on-premise infrastructure even though it’s cheaper than AWS?
“AI in a box” sounds a heck of a lot like “the box” from the Silicon Valley TV show. Or the Google search appliance. Or name any other on-premise thing that is equally dinosauric.
The real finding of this article is that AI tokens are direct competitors with offshoring. $1,500/month buys you a whole employee in India.
And this is before AI companies inevitably increase pricing after the conclusion of the growth phase.
> I don’t think companies will do that. Why don’t they just buy local on-premise infrastructure even though it’s cheaper than AWS?
For customer facing, production software, its worth paying a cloud tax to get the reliability guarantee. For tools that are used by engineers for code development, there is no need for such bulletproof guarantees.