Why generative AI is driving a boom in alternative cloud providers

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The demand for alternative clouds, specifically for GPU infrastructure, is on the rise as the generative AI trend continues to grow. Companies like CoreWeave, Lambda Labs, and Together AI are attracting significant investments due to their offerings of cloud-hosted GPU instances. These alternative clouds offer cheaper options than traditional cloud providers like AWS, Google Cloud, and Microsoft Azure for training and running generative AI models. However, the sustainability of this growth is uncertain as incumbents invest in custom hardware and there is the looming threat of the generative AI bubble bursting.

Keyword: Alternative clouds, Generative AI, GPU infrastructure

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