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Cloud Firms Plan Infrastructure Overhaul for AI


By: Mary Jander

Generative AI – the ability to generate text, images, and more from natural language – has cloud providers scrambling to offer development tools and processing power with their services. The results could have far-reaching effects on their infrastructures (and wallets).

Generative AI went viral with the general release of OpenAI’s ChatGPT in November 2022. Since then, cloud service providers have hurried to supply the resources on which generative AI applications depend.

Here's the challenge: To create generative AI applications requires “training” algorithms to recognize patterns of language, image, sound, etc. through continuous flows of massive amounts of data. This calls for acceleration of compute power; intelligent, high-speed networking across processors; and deep scientific expertise. All expensive, all potentially game-changing for cloud providers.

But the cloud titans have no choice: It’s change or get left behind. Enterprise customers are already demanding generative AI resources in public cloud services. “There is actually more demand for AI processing than there is available capacity,” said Larry Ellison, chairman of the board and CTO of Oracle Corp. (NYSE: ORCL), on the company’s latest earnings call. “We are expanding as fast as we can.”

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