Cloud compute market sizing and why Aethir fits the GPU shortage
Quote533 words
Sizes cloud infrastructure (AWS 31%, Azure 25%, Google 11%, over $400B annual by year-end) and ties GPU scarcity (Nvidia 80% share, 4-11 month delivery) to the case for Aethir, which reports $36M ARR and a $30B+ TAM.
Key claims
Q1 2024 cloud spend over $76B; AWS 31%, Azure 25%, Google 11%
GPU delivery times peaked at 11 months, now about 4
Aethir reports over $36M ARR
The AI industry is valued in the $100s of Billions.
The Gaming industry is valued in the $100s of Billions.
🤖 What do they have in common?
Both require cloud infrastructure & computing power.
An emerging trillion $$$ market.
Already in Q1 2024, enterprise spending on cloud companies’ infrastructure services was well over $76 billion.
The total enterprise market size is likely to grow beyond $400B in total annual revenue by the end of the year.
The clear leader in the game is @awscloud with a market share of 31% before @Azure (25%) and @googlecloud (11%) in second and third spot.
Likely before 2030, the market will already breach the trillion dollar mark.
Please note that the numbers in the chart above differ from the ones mentioned before as this chart is not exclusively focused on enterprise spending (which is the majority of the market tho).
🤖 Where does this demand come from?
Generative AI models like @OpenAI are sweeping across the globe.
Training these LLMs involves billions of parameters, requiring massive computational resources and running them does too.
This has been the main driver of the crazy surge in demand for high-end GPUs.
Unfortunately, the skyrocketing demand meets a limited supply.
With @nvidia, a single company accounts for 80% market share in the production of GPUs.
Due to a tight supply, it has become increasingly difficult in recent months to acquire GPUs with many models out of stock and long delivery times.
This is especially true for small companies, as @nvidia has been facing scrutiny for prioritizing the big cloud providers over startups.
Delivery times for GPUs peaked at 11 months and are still sitting at around 4 months, indicating sustained high demand.
That's not all though.
While a much smaller overall market, GPUs also play an increasingly important role in powering cloud gaming.
Another market that is expected to grow fast and turn into a multi-billion $$$ opportunity within only a few years.
🤖 How can we serve this demand?
DePIN.
More specifically, @AethirCloud.
I will dive into the tech on a different occasion.
Today, let's stay on this gigantic market opportunity.
Today, AI or Gaming companies in need of GPU resources & compute either leverage private datacenters (a billion dollar industry already too) or the infrastructure services of the before-mentioned players like @awscloud, @googlecloud, etc.
@AethirCloud has identified its target sectors* to already have a total addressable market of $30+ Billion.
* ) consisting of slices of the total market size of certain sub-sectors that require GPUs such as Cloud Gaming, but also in the AI market and alongside innovative ideas like Cloud Telephony.
Soon it might be trillions of dollars.
Since inception, @AethirCloud has generated over USD $36 million in annual recurring revenue.
Soon it might be billions of dollars.
🤖 What's the conclusion?
@AethirCloud has proven PMF impressively already and is positioned in a sector with enormous growth potential in the years to come.
NFA, but DYOR anon!
For more info, check out the post below! 👇
QUOTING @AethirCloud
Unveiling Aethir’s Core Business and Annual Revenue Since our inception, Aethir has stood out with its unique proposition: creating enterprise-grade innovations through our Decentralized GPU Infrastructure. Through this product vision, we have garnered over USD $36 million in a
Unveiling Aethir’s Core Business and Annual Revenue Since our inception, Aethir has stood out with its unique proposition: creating enterprise-grade innovations through our Decentralized GPU Infrastructure. Through this product vision, we have garnered over USD $36 million in a
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What came next · since 17 Jul 2024
Since then
Zero has written 6 more pieces on Aethir since this one.