Tech

The uneven distribution of AI is widening the global technological gap

There's a quiet revolution underway in the world of cloud computing, but it's not one that's driving innovation. Rather, it is a stranglehold that increases control over organizations and the global technology industry as a whole, creates anti-innovation, inhibits technological progress for some, and hinders progress for others. The cloud hyperscale oligopoly casts a shadow over entire industries, impeding global innovation with little awareness of its direct victims, let alone its indirect victims. Consider civilians across the border in US technology hubs. The risks are rising as AI looks to drive global innovation.

The lure of seamless, superior services promised and delivered by large cloud service providers (CSPs) masks hidden problems. The convenience, expertise, integrated services, and familiarity offered by a single cloud provider poses major dependency questions. This trend has been an industry best practice since the mid-2010s, with the growing success of Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). While cloud services work smoothly within a single provider, the three US-based cloud hyperscalers do not have universal standards enforced, hindering cross-cloud mobility and integration. So businesses have no choice but to entrust their digital future to a single cloud provider, and somehow governments and investors have accepted that.

An ongoing antitrust case – US et al. v. Google – is an example of the US government challenging one provider's monopoly, but this is a separate case. In fact, 80% of businesses are locked into services from one of the top three cloud providers. The underlying dependencies hidden behind comfort and convenience centralize power and control, making it difficult for businesses to envision a digital future beyond the limitations of the cloud.

The overwhelming trust in cloud partners and the lack of pushback despite so many dependencies is potentially more worrying than the lock-in itself, and could be described as an outbreak of Stockholm Syndrome on a large scale. not. That is true, but there is no resolve from the industry itself.

JJ Cardwell

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CEO of Constant, which provides the cloud platform Vultr.

AI can turn wildfires into hell

The advances and possibilities of AI are making the problem even more acute. At the heart of this problem is the artificial inflation of GPU prices, determined by the dominance of hyperscale cloud service providers. This pricing power on the part of those in charge isn't just an inconvenience, it's a stifle of innovation, and it's the biggest stifle outside of America's tech capitals.

As the majority of GPU chips essential for advanced AI applications end up in the hands of hyperscalers, the impact will ripple throughout the business environment. Startups, especially those entering AI, face an uphill battle in presenting a viable business case due to the prohibitive costs associated with GPUs. Cloud computing prices continue to soar even as companies relentlessly cut costs in other areas. It's not just an expense. This is the lifeblood of your company, so it's impossible to simply switch off and consider alternative options.

Centralized management of critical resources impedes global innovation, creating a scenario in which regional technology hubs beyond the West and East coasts of the United States are left behind, unable to even consider developing regions, let alone the rest of the world. is producing. world.

This disparity is clear. While cities like Amsterdam and London may be feeling the pinch, access to GPUs has become an insurmountable challenge in Eastern Europe, Italy, and Spain. This inequity in resource access inadvertently shifts the focus of global innovation to the region's most important issues that benefit hyperscalers, and prevents the rest of the world from tackling its unique challenges. As a result, the gap between digital assets and economic assets will widen significantly. ” and “I don’t have it.”

The impact of this GPU shortage is not limited to the business world. In highly regulated industries like healthcare, where the need for AI-driven innovation is paramount, limiting GPU access poses a clear challenge. Difficulties in complying with regulatory requirements force organizations to rely on physical GPUs deployed in local data centers, reintroducing the operational risks that cloud computing sought to eliminate.

The hard truth is that this GPU shortage is a crisis with far-reaching implications. The risks of global business and humanitarian disasters are growing as companies struggle to secure the resources needed for AI innovation.

Avoiding a looming business and humanitarian crisis

It is time for industry players, governments, and investors to understand their responsibilities and act quickly to avoid a global crisis caused by the leakage of global cloud lock-in to AI forces.

Governments should take proactive steps to ensure equal distribution of GPUs, foster competition within the cloud computing and AI sector, and force all cloud providers to support cloud interoperability standards. there is. Promote a regulatory framework that encourages open market practices so that buyers have sufficient availability and choice, suppliers can compete without lock-in, and break the monopolistic dominance of a few cloud products; or You can create an environment where things can get even worse. AI products.

Since the beginning of the global cloud migration, the importance of clear guidelines around data ownership (sovereignty), transfer, and protection has become clear to governments and businesses. But even data portability remains largely unsolved. Given the risk that AI will become an “added cloud service,” using a specific cloud for your applications will affect where your data is stored, how your computing resources are managed, and how you can implement specific use cases, such as: Having the freedom to choose your method becomes even more important. Involves large-scale language models (LLMs). By working together to develop open standards, industry stakeholders can reduce dependence on proprietary technologies and promote interoperability and choice.

A commitment to digital sovereignty is gaining importance to ensure countries have control over their critical digital infrastructure and data. Governments can support the development of national or regional cloud initiatives to provide secure and competitive alternatives and reduce dependence on a small number of global providers.

Companies themselves can also proactively adopt practices that align with open cloud standards. Betting your company on infrastructure you don't own is extremely risky. Therefore, it is essential to add an abstraction layer with global, neutral standards between your organization and the underlying infrastructure. Supporting the development of alternative cloud providers, participating in establishing open standards, and embracing digital sovereignty initiatives are ways businesses can contribute to a more fair and competitive environment.

The AI revolution has begun, with the potential to contribute up to $15.7 trillion to the global economy by 2030, and potentially have a major impact on society as a whole. Today is a historic day for the world to either accept and deepen existing racism and place more power in the hands of certain leaders, or for governments and industry to tackle this issue head-on and limit the illegal reign of silence. It's a moment. power.

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