Originally posted on Data Center POST
A recent panel discussion at infra/STRUCTURE 2024 in Las Vegas provided valuable insights into the rapidly evolving landscape of GPU hosting. The “From CPU to GPU Infrastructure” panel, moderated by Philbert (“Phil”) Shih, Managing Director of Structure Research, and featured Jeff Hinkle, CEO of GPU Resources and Zhen Lu, CEO of RunPod. The conversation shed light on their experiences, challenges, and opportunities in this burgeoning sector.
Rapid Growth and Financial Considerations
The GPU hosting market is experiencing explosive growth, reminiscent of the early days of web hosting. Lu shared, “when we launched RunPod, it was entirely free. We built the billing system so that we could eventually charge people”, before adding that they quickly “were doubling revenue every month for the year. We were a two person startup and we were already gearing more than 500 grand a month.”
While this rapid growth is specific to RunPod, Lu’s experience reflects a broader trend of explosive demand in the GPU hosting market. The panelists also alluded to a “land grab mentality” in the industry, as companies rush to capture market share.
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