According to IEEE Spectrum, as artificial intelligence (AI) continues to evolve, the need for significant computational resources has never been more pressing. Graphics processing units (GPUs) have become the hardware of choice for powering deep learning models due to their efficiency in handling multiple operations simultaneously.
However, the high cost of GPUs has left many AI startups struggling to keep up with the demand. Outsourcing this computing power has proven to be a more viable option for some.
One of several companies capitalising on this growing trend, Kinesis said that by removing the need to purchase and maintain the physical infrastructure, GPUaaS allows companies to avoid investing in servers and IT management, putting resources instead toward improving their deep learning, large language, and large vision models.
"It also lets customers pay for the exact amount of GPUs they use, saving the costs of the inevitable idle compute that would come with their servers."
In 2023, the industry was valued at $3.23 billion, and by 2024, it had expanded to $4.31 billion. According to IEEE Spectrum, projections indicate this figure will rise significantly to $49.84 billion by 2032.
It appears that the shift towards this model is driven by the realisation more than half of GPUs worldwide sit idle at any given time.
Kinesis claims to have capitalised on this by partnering with universities, data centres, and individuals willing to sell their unused computing power. Their software identifies idle CPUs and GPUs in servers worldwide and combines them into a centralised, remote computing source that clients can use as needed.
This arrangement maximises existing resources and provides a more economical solution for companies needing significant processing capacity.
In addition to the flexibility and cost savings, GPUaaS providers are tapping into an increasingly lucrative market driven by the AI boom. With the growing demand for more sophisticated AI models, the need for scalable, on-demand computing resources has never been greater.
