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David Friedberg

πŸ‘€ Speaker
9253 total appearances

Appearances Over Time

Podcast Appearances

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

Off-ramp number one is what's called a cross-subsidy.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

which is essentially to say that they pay a rate card, which they can absorb with all their free cash flow, materially higher than what other rate payers would pay in that geographic area.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

So the homeowner, his or her electricity costs stay flat to down, the data center costs are higher, and it's the Metas, the Googles, the Apples, the Amazons who have hundreds of billions of free cash, they absorb it.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

That was idea number one.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

And idea number two is to start to set up some mechanism so that they can install things like batteries at every single home in and around these data centers to allow those homes to have a better chance of actually absorbing some of this inflation without having to pay it.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

I was just trying to paint the case that my economic model for going to open source is better because I can't pay $3 an output token.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

and then also pay for all this stuff.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

Yeah, so when I first started 8090, my only solution was Bedrock, which is a service that Amazon provides that allows you to essentially get inference as a service, right?

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

So as we are building our product, and we need inference and we need inference tokens.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

Bedrock basically handles everything.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

So it's what AWS is, but for this vertical of AI, right?

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

So they have the servers.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

These are in American data centers.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

They're managed by Americans.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

And what they do is they take a handful of models

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

And they make sure that they can support usage of those models.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

That was how we started.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

But as with everything, we have to manage our costs and our operating profile.

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

And so we're always looking for, are there other models and other places other than Amazon that can service our needs?

All-In with Chamath, Jason, Sacks & Friedberg
Biggest LBO Ever, SPAC 2.0, Open Source AI Models, State AI Regulation Frenzy

Because in fairness, Amazon is very expensive.