Modal CEO explains GPU contracts and elastic compute

On October 23, Latent Space published an interview with Modal CEO Erik Bernhardsson about why AI compute is sold as "rectangular contracts." Bernhardsson said these GPU contracts fix both quantity and term, which makes them a poor fit for customers whose compute needs fluctuate. Modal pools customer demand to offer elastic compute instead. The interview lays out the mismatch between fixed contracts and fluctuating demand, and how Modal responds to it.

Written by AI from the coverage · updated 1 hour ago

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