About this episode
Evan Conrad, co-founder of SF Compute, joined us to talk about how they started as an AI lab that avoided bankruptcy by selling GPU clusters, why CoreWeave financials look like a real estate business, and how GPUs are turning into a commodities market. Chapters: 00:00:05 - Introductions 00:00:12 - Introduction of guest Evan Conrad from SF Compute 00:00:12 - CoreWeave Business Model Discussion 00:05:37 - CoreWeave as a Real Estate Business 00:08:59 - Interest Rate Risk and GPU Market Strategy Framework 00:16:33 - Why Together and DigitalOcean will lose money on their clusters 00:20:37 - SF Compute's AI Lab Origins 00:25:49 - Utilization Rates and Benefits of SF Compute Market Model 00:30:00 - H100 GPU Glut, Supply Chain Issues, and Future Demand Forecast 00:34:00 - P2P GPU networks 00:36:50 - Customer stories 00:38:23 - VC-Provided GPU Clusters and Credit Risk Arbitrage 00:41:58 - Market Pricing Dynamics and Preemptible GPU Pricing Model 00:48:00 - Future Plans for Financialization? 00:52:59 - Cluster auditing and quality control 00:58:00 - Futures Contracts for GPUs 01:01:20 - Branding and Aesthetic Choices Behind SF Compute 01:06:30 - Lessons from Previous Startups 01:09:07 - Hiring at SF Compute