* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Saturday, October 11, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    The Live-Action Simpsons Movie That Was Supposed To Star Phil Hartman – Yahoo

    The Live-Action Simpsons Movie That Was Supposed To Star Phil Hartman – Yahoo

    The Best “Friends” Halloween Episodes That Blend Spooky And Silly In The Perfect Way – Yahoo

    The Best “Friends” Halloween Episodes That Blend Spooky And Silly In The Perfect Way – Yahoo

    MSG Entertainment Takes Radio City Music Hall Into the Future With Introduction of Sphere Immersive Sound – Business Wire

    MSG Entertainment Transforms Radio City Music Hall with Cutting-Edge Sphere Immersive Sound Experience

    Israel’s Entertainment Industry Is Being Targeted by the Left in Hollywood and the Right at Home – The Wall Street Journal

    Inside the Fierce Clash Shaping Israel’s Entertainment Industry: Hollywood vs. Local Voices

    Offset Is Ready To Finalize Divorce With Cardi B for a Major Reason – Yahoo

    Offset Poised to Finalize Divorce from Cardi B for a Major Reason

    Beyond the Stage: 8 Performing Arts Centers Driving Entertainment and Education – Livability.com

    Beyond the Stage: 8 Performing Arts Centers Transforming Entertainment and Education

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Vicor Corporation: Great Technology, Execution Trapped In Time (NASDAQ:VICR) – Seeking Alpha

    Vicor Corporation: Innovative Technology Hindered by Lackluster Execution

    4J schools trying out new electronic hall pass technology – Lookout Eugene-Springfield

    4J Schools Unveils Cutting-Edge Electronic Hall Pass System to Transform Student Experience

    China outlines more controls on exports of rare earths and technology – fox40.com

    China Unveils Tougher Restrictions on Rare Earth and Technology Exports

    Wisconsin Dairy Leads the Way with Cutting-Edge Technology Systems

    ENERCON and Biome collaborate for wind turbine noise reduction technology – Yahoo Finance

    ENERCON and Biome Join Forces to Revolutionize Wind Turbine Noise Reduction

    US and investors gambling on unproven nuclear technology, warn experts – Financial Times

    US and investors gambling on unproven nuclear technology, warn experts – Financial Times

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    The Live-Action Simpsons Movie That Was Supposed To Star Phil Hartman – Yahoo

    The Live-Action Simpsons Movie That Was Supposed To Star Phil Hartman – Yahoo

    The Best “Friends” Halloween Episodes That Blend Spooky And Silly In The Perfect Way – Yahoo

    The Best “Friends” Halloween Episodes That Blend Spooky And Silly In The Perfect Way – Yahoo

    MSG Entertainment Takes Radio City Music Hall Into the Future With Introduction of Sphere Immersive Sound – Business Wire

    MSG Entertainment Transforms Radio City Music Hall with Cutting-Edge Sphere Immersive Sound Experience

    Israel’s Entertainment Industry Is Being Targeted by the Left in Hollywood and the Right at Home – The Wall Street Journal

    Inside the Fierce Clash Shaping Israel’s Entertainment Industry: Hollywood vs. Local Voices

    Offset Is Ready To Finalize Divorce With Cardi B for a Major Reason – Yahoo

    Offset Poised to Finalize Divorce from Cardi B for a Major Reason

    Beyond the Stage: 8 Performing Arts Centers Driving Entertainment and Education – Livability.com

    Beyond the Stage: 8 Performing Arts Centers Transforming Entertainment and Education

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Vicor Corporation: Great Technology, Execution Trapped In Time (NASDAQ:VICR) – Seeking Alpha

    Vicor Corporation: Innovative Technology Hindered by Lackluster Execution

    4J schools trying out new electronic hall pass technology – Lookout Eugene-Springfield

    4J Schools Unveils Cutting-Edge Electronic Hall Pass System to Transform Student Experience

    China outlines more controls on exports of rare earths and technology – fox40.com

    China Unveils Tougher Restrictions on Rare Earth and Technology Exports

    Wisconsin Dairy Leads the Way with Cutting-Edge Technology Systems

    ENERCON and Biome collaborate for wind turbine noise reduction technology – Yahoo Finance

    ENERCON and Biome Join Forces to Revolutionize Wind Turbine Noise Reduction

    US and investors gambling on unproven nuclear technology, warn experts – Financial Times

    US and investors gambling on unproven nuclear technology, warn experts – Financial Times

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

GenAI sticker shock sends CIOs in search of solutions

July 19, 2024
in Business
GenAI sticker shock sends CIOs in search of solutions
Share on FacebookShare on Twitter

‘Frenetic’ spending, compute-intensive workloads, and a market dominated by one hardware maker have IT leaders looking to new technologies and methods for containing the high costs of generative AI.

The early bills for generative AI experimentation are coming in, and many CIOs are finding them more hefty than they’d like — some with only themselves to blame.

“We’re getting back into this frenetic spend mode that we saw in the early days of cloud,” observed James Greenfield, vice president of AWS Commerce Platform, at the FinOps X conference in San Diego in June.

J.R. Storment, executive director of the FinOps Foundation, echoed the concern.

“It’s very reminiscent of the early days of cloud when it was ‘weapons-free’ on spending with everyone trying to implement cloud — and now genAI — everywhere but with little to no cost control or governance,” he says. 

To counteract this, and in anticipation of further forays with the technology, some CIOs are exploring a range of technologies and methods to curb the cost of generative AI experimentation and applications.

According to IDC’s “Generative AI Pricing Models: A Strategic Buying Guide,” the pricing landscape for generative AI is complicated by “interdependencies across the tech stack.” But there are no ways around the significant premium pricing being placed on generative AI workloads because the core infrastructure necessary to train and tune generative AI models are “largely supplied by one company: Nvidia,” IDC notes.

As customers await more ample supply of GPUs, many are looking to AI-specific service providers, as well as public and private cloud offerings for hosting genAI workloads, including Nvidia’s cloud, AWS Trainium and Infertia, and Google Tensor Processor Units, according to IDC Market Glance: Generative AI Foundation Models. CIOs are also turning to OEMs such as Dell Project Helix or HPE GreenLake for AI, IDC points out.

The AI service providers, sometimes dubbed AI hyperscalers, offer GPU-as-a-service, enabling enterprises to purchase GPU power on demand to limit spending. These AI service providers include CoreWeave, Equinix, Digital Realty, and Paperspace, as well as GPU leader Nvidia and, to an extent, cloud hyperscalers Microsoft, Google, and AWS.

IBM, Oracle, Dell, and Hewlett Packard Enterprise also offer GPU-as-a-service.

Given Nvidia’s overwhelming dominance in the GPU market, CIOs are looking at GPUaaS alternatives now rather than wait for the other top chip companies to catch up. This on-demand approach also vastly reduces the upfront costs of buying processors and scales up or down based on workload, notes Tom Richer, a former CIO and current CEO of CloudBench, a Google Partner and CIO consultancy.

“To meet CIO needs, vendors will offer various options like virtual machine instances with different GPU configurations and spot instances for discounted compute power,” Richer says, adding that containerized AI frameworks can also help IT leaders ensure efficient resource utilization. “By understanding their options and leveraging GPU-as-a-service, CIOs can optimize genAI hardware costs and maintain processing power for innovation.”

Richer also believes that cloud-based GPU access will help enterprises free up IT resources for other critical tasks and “potentially streamline the development process for genAI projects.”

The cost equation

But CIOs zeroing in on GPUaaS — and other cloud-based generative AI solutions — are likely to face familiar problems when it comes to cost containment, FinOps’ Storment argues.

“We’ve already seen the cost of AI really start to negatively impact cloud budgets,” he says. “In the end, it’s still unclear to many CIOs though of the value they are getting out of the AI experimenting, so we’re seeing the costs of AI spiraling for many and feeding a wave of interest in how to do ‘FinOps for AI’ by applying cost visibility principles already prevalent in FinOps for other cloud costs.” 

Brian Shield, CTO of the Boston Red Sox and Fenway Sports Management, say that to keep costs in check CIOs should selectively deploy genAI solutions to key areas of the business and implement a thoughtful genAI evaluation process to prevent overlap and proliferation.

Shield is also looking to negotiate cost based on the quality of the output. “I have proposed paying genAI vendors on a per-use-case basis. In other words, if the tool performs well, that is, production-worthy, I’ll pay you X. For solutions with less than 90% accuracy, if there are still viable use cases, I’ll pay you Y,” Shield says. “If you can improve your tool, I’ll move you to the higher-paid group. All vendors balk, but I’m still in conversations with others.”

John Marcante, US CIO in Residence at Deloitte and former Global CIO at Vanguard, sees innovation in the marketplace also coming to CIOs’ aid.

“The heart of generative AI lies in GPUs. These chips are evolving rapidly to meet the demands of real-time inference and training. As we delve deeper into this innovation cycle, expect GPUs to become even more efficient, capable, and specialized for AI workloads,” he says.

GPU-as-a-service providers and platforms are also beginning to offer turnkey solutions for marketing, finance, legal, and client processes to enable businesses to focus on their core competencies, Marcante says.

He points out that some organizations will build their own generative AI platforms, tailoring them to their unique requirements. “This approach ensures ownership and customization,” he says, noting that collaborating with AI providers in the same way enterprises partner with cloud providers today is another path. “These models will range from renting GPUs to comprehensive full-stack AI services.”

Models make a difference

The rapid acceleration, experimentation, and evolution of large language models (LLMs) has also provided insights about tailoring outcomes and reducing costs.

For example, CIOs on a budget can reduce generative AI costs by using open-source models, such as OpenAI and LLaMA, which can be accessed from various marketplaces and offer several advantages, says Bern Elliott, a distinguished analyst at Gartner.

“Open source is one way CIOs can definitely keep the costs low,” he says, pointing out that open-source models are also transparent and can be customized. “For many enterprises, that’s where the cost is. If the cost of running it is low, the margins become better.”

Making use of smaller, domain-specific models for smaller scope tasks is another way CIOs are curbing the cost of generative AI.

“If you look at the GPUs, they are incredibly expensive, and especially if you’re a large language model. Everyone’s on a journey to figure out what the right answer is for them, because the answer of not using genAI is not on the table,” says Chris Bedi, chief customer officer at ServiceNow. “Having domain-specific models helps keep our costs under control, which then we’re able to pass along that benefit to our customers.”

RunPod is a GPU-as-a-service for developers that is very cost effective for universities and startups. Students at OpenCV University and an AI consultancy spinoff, for instance, use RunPod to train AI models, says Satya Mallick, Ph.D. and CEO of OpenCV.org.

“For a small business like ours that needs multiple high-end GPUs for only a few days to a few weeks at a time, RunPod’s solution is extremely cost-effective as we do not incur the huge upfront cost of purchasing GPUs,” Mallick says, noting that his team is also evaluating RunPod’s serverless product.

Energy consumption: Another cost consideration

CIOs are also mindful of the massive energy consumption of generative AI applications, which is another hefty cost to consider.

“AI is compute-intensive and it’s impacting data centers globally,” says Bryan Muehlberger, former CIO at Vuori and currently CTO of Schumacher Homes. “Unless we solve our energy problems nationally, this will eventually become a much bigger problem and the costs will be passed down the companies using the services.”

As AI continues to evolve, innovative solutions for managing hardware costs and maximizing processing power are likely to emerge, Cloudbench’s Richer says, adding that the environmental impact of running powerful GPUs will be a concern for some organizations.

“Cloud providers are increasingly focusing on sustainable practices, and utilizing cloud-based GPUs can be a more energy-efficient solution compared to on-premise hardware,” says Richers, “However, it’s crucial for CIOs to carefully evaluate the trade-offs between cost, performance, and data security when choosing a GPUaaS solution.”

Other CIOs are enjoying the cost-saving benefits of their enterprise license agreements with major cloud and AI providers such as Microsoft, Google, and AWS.

“We have chosen MS Copilot for wide applicability, which we believe will cater to about 80% of our use cases,” says Bob Brizendine, CIO of American Honda. “This is part of our existing licensing agreement with Microsoft, allowing us to streamline costs effectively. Others may not be in that same situation.”

Related content

news

SAP offers AI to all Rise customers — in unknown, varying amounts

Joule AI is now available to all Rise with SAP customers, but customers not using SAP Cloud solutions remain out of luck.

By Lynn Greiner

Jul 19, 2024

5 mins

SAP
Generative AI
ERP Systems

news

SAP security holes raise questions about the rush to AI

Cloud security firm Wiz has published a detailed report about SAP security holes, now patched, that raises alarming questions about the secondary role AI efforts are having on cybersecurity defenses.

By Evan Schuman

Jul 18, 2024

1 min

SAP
Cloud Security
Artificial Intelligence

brandpost

Sponsored by Rocket Software

Navigating the data management maze: How emerging tech and modern solutions are revolutionizing mainframe-to-cloud integration

If an enterprise wants to leverage these and other new technologies, it must incorporate strong data management practices to know where data is, and whether it should move into a cloud setting or stay in the mainframe—a task that presents new,

By Phil Buckelew

Jul 18, 2024

4 mins

Data Management

brandpost

Sponsored by Rocket Software

Breaking through the complexity of performance monitoring with Anomalytics

There is a glaring need to simplify mainframe monitoring for IT professionals today. But where should they get started?

By Phil Buckelew

Jul 18, 2024

3 mins

Security Infrastructure

PODCASTS

VIDEOS

RESOURCES

EVENTS

SUBSCRIBE TO OUR NEWSLETTER

From our editors straight to your inbox

Get started by entering your email address below.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : CIO – https://www.cio.com/article/2518411/genai-sticker-shock-sends-cios-in-search-of-solutions.html

Tags: businessGenAIsticker
Previous Post

Funding highlights: Sircel, Huma, Briefly Bio and more 

Next Post

As mainframe application development grows, so does the security risk

China’s mega-projects pushing Tibet to “Extreme Ecological Stress”, warns Stockholm report ahead of COP30 – Phayul

China’s mega-projects pushing Tibet to “Extreme Ecological Stress”, warns Stockholm report ahead of COP30 – Phayul

October 11, 2025
Scientists discover powerful phenomenon that could impact this winter’s weather: ‘Cascading effects’ – Yahoo

Scientists discover powerful phenomenon that could impact this winter’s weather: ‘Cascading effects’ – Yahoo

October 11, 2025
UTPB’s STEAMfest is back for the 4th year – CBS7

UTPB’s STEAMfest Returns for an Exciting 4th Year Celebration

October 11, 2025
Fan-Favorite Seasonal Sprite Flavor Is Back – Yahoo

Fan-Favorite Seasonal Sprite Flavor Is Back – Yahoo

October 11, 2025
Vicor Corporation: Great Technology, Execution Trapped In Time (NASDAQ:VICR) – Seeking Alpha

Vicor Corporation: Innovative Technology Hindered by Lackluster Execution

October 11, 2025
Why is Ben Johnson trusting a 29-year-old first-time colleague to coordinate Bears’ offense, develop Caleb Williams? Meet Declan Doyle, and you’ll understand – Yahoo Sports

Why is Ben Johnson trusting a 29-year-old first-time colleague to coordinate Bears’ offense, develop Caleb Williams? Meet Declan Doyle, and you’ll understand – Yahoo Sports

October 11, 2025
GCU, Phoenix Rescue Mission join voices for World Homeless Day song release – GCU News

GCU and Phoenix Rescue Mission Join Forces to Release Uplifting Anthem for World Homeless Day

October 10, 2025
Germany’s Economy Is Forecast to Outperform in 2026 – Goldman Sachs

Germany’s Economy Is Forecast to Outperform in 2026 – Goldman Sachs

October 10, 2025
The Live-Action Simpsons Movie That Was Supposed To Star Phil Hartman – Yahoo

The Live-Action Simpsons Movie That Was Supposed To Star Phil Hartman – Yahoo

October 10, 2025
Empowering the global health workforce through innovative lifelong learning models – World Health Organization (WHO)

Empowering the global health workforce through innovative lifelong learning models – World Health Organization (WHO)

October 10, 2025

Categories

Archives

October 2025
M T W T F S S
 12345
6789101112
13141516171819
20212223242526
2728293031  
« Sep    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (862)
  • Economy (882)
  • Entertainment (21,755)
  • General (17,528)
  • Health (9,924)
  • Lifestyle (895)
  • News (22,149)
  • People (883)
  • Politics (892)
  • Science (16,093)
  • Sports (21,383)
  • Technology (15,863)
  • World (865)

Recent News

China’s mega-projects pushing Tibet to “Extreme Ecological Stress”, warns Stockholm report ahead of COP30 – Phayul

China’s mega-projects pushing Tibet to “Extreme Ecological Stress”, warns Stockholm report ahead of COP30 – Phayul

October 11, 2025
Scientists discover powerful phenomenon that could impact this winter’s weather: ‘Cascading effects’ – Yahoo

Scientists discover powerful phenomenon that could impact this winter’s weather: ‘Cascading effects’ – Yahoo

October 11, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version