①Capital One in partnership with Nvidia At a technology conference, [he/she] expressed [his/her] support for AWS cloud computing . ① Cost concerns and consideration of alternatives; ② Nvidia noted in a filing that the two companies discussed artificial intelligence. The possibility of factories and new cloud alternatives to AWS; ③ Although Capital One says it will continue to work with AWS, AWS’s high cost is being widely complained about in the industry.
According to an internal Nvidia document, Bank of America Amazon's financial arm, Capital One, expressed concerns about cloud computing costs at a technology conference with Nvidia, particularly Amazon. AWS (AWS) cloud computing services.
Capital One has seen its growing demand for GPUs and inference models and therefore believes its costs on AWS will soon spiral out of control. The company has told Nvidia it hopes to find an alternative to AWS as the financial institution seeks to control costs.
According to the document, Nvidia and Capital One discussed AI factories and new types of clouds, the former referring to internal data centers built by enterprises themselves. The latter is an emerging cloud service provider focused on artificial intelligence workloads. Both methods can serve as alternatives to renting computing resources from third parties.
AWS is one of the leading cloud service providers in the North American market, supporting a wider range of computing needs than newer cloud providers, and is also a key partner of Capital One. Capital One is leveraging artificial intelligence technologies to perform tasks such as fraud detection, customer support, and algorithmic trading.
New cloud technologies are gaining momentum.
Leading new cloud service providers include CoreWeave, Lambda, Crusoe, and Nebius. Nvidia has been working closely with several of these companies, partly to reduce its reliance on traditional cloud giants.
At the same time, businesses tend to purchase multiple cloud services to reduce cloud spending. According to the Royal Bank of Canada... A recent report from the capital markets indicates that 43% of enterprises are using more than two public cloud service providers.
In response to the internal document, Capital One stated that it will continue to maintain its partnership with AWS. AWS, in turn, pointed out that its pricing philosophy is to continuously strive to reduce its own costs and pass on the savings to AWS customers at lower prices.
However, Capital One is not the only company expressing concerns about AWS fees. According to internal Amazon documents from March and July, AI startups are increasingly relying on competitor cloud platforms due to AWS's high costs. These newer cloud providers allow customers to rent GPU computing power on demand and pay only for actual usage, while AWS typically charges on a time-based basis.
Data from consulting firm Synergy also shows that AWS's market share peaked in the second quarter of 2022 and has been slowly declining since then, while Oracle... Its market share, along with other emerging cloud providers, is growing slowly. However, as of the third quarter of this year, AWS and Microsoft... Azure and Google Cloud, the three largest cloud service providers, still account for 63% of enterprise cloud infrastructure spending.
(Article source: CLS)
