Erik Bernhardsson

I mean, I don't like, I just think for like a capital efficiency point of view, like, do you really want to tie up that much money and like, you know, physical hardware and think about depreciation and like, like, as much as possible, like I, you know, I favor a more capital efficient way of like, we don't want to own the hardware because then, and ideally, we want to, we want the sort of margin structure to be sort of like 100% correlated revenue in cogs in the sense that like, you know, when someone comes and pays us, you know, $1 for compute, like, you know, we immediately incur a cost of like, whatever, 70 cents, 80 cents, you know, and there's like complete correlation between cost and revenue because then you can leverage up in like a kind of a nice way you can scale very efficiently.

“I mean, I don't like, I just think for like a capital efficiency point of view, like, do you really want to tie up that much money and like, you know, physical hardware and think about depreciation and like, like, as much as possible, like I, you know, I favor a more capital efficient way of like, we don't want to own the hardware because then, and ideally, we want to, we want the sort of margin structure to be sort of like 100% correlated revenue in cogs in the sense that like, you know, when someone comes and pays us, you know, $1 for compute, like, you know, we immediately incur a cost of like, whatever, 70 cents, 80 cents, you know, and there's like complete correlation between cost and revenue because then you can leverage up in like a kind of a nice way you can scale very efficiently.”

Speaker

Erik Bernhardsson

Episode

Truly Serverless Infra for AI Engineers - with Erik Bernhardsson of Modal

Publisher

Latent Space