Amazon's Jeff Bezos once revealed his vision for a cloud-based future, where local PC hardware is replaced by cloud options. Will DRAM prices make it come true?
In recent years, I've been reminded of an insightful talk given by Amazon chairman and founder Jeff Bezos, and its relevance to the current state of artificial intelligence (AI) has become increasingly apparent. As AI continues to transform industries, Bezos' words about the antiquated nature of local PC hardware seem more prescient than ever.
Microsoft's bold move towards creating an "AI-first" Windows has sparked a heated debate between users and shareholders over the past year. The tech giant has been leveraging its OpenAI-powered chatbot Copilot in various half-baked integrations across its products, from Outlook to Microsoft Paint.
The introduction of Copilot has led to mixed reactions, with some praising its potential while others criticize its performance. Despite this, Microsoft is actively marketing Copilot, showcasing features that don't quite live up to their promised capabilities. Could there be an ulterior motive behind this strategy?
Bezos' prediction about the future of computing revolves around cloud-based scenarios, where users rent their compute from companies like Amazon Web Services or Microsoft Azure. This vision may seem far-fetched, but it's already gaining traction.
The rise of cloud gaming products like Amazon Luna, NVIDIA GeForce Now, and Xbox Cloud Gaming has seen steady growth in recent years. The vast majority of apps and services people engage with online are entirely cloud-based, from Fortnite to TikTok. Is it really so far-fetched to imagine that most people would be "fine" with renting their full computing solutions from companies like Microsoft and Amazon?
The current state of DRAM prices may force consumers to reconsider their options. Companies like Dell, ASUS, and others have signaled price increases across their PC range in the coming weeks, while chip companies like Micron and Samsung have refused consumer-grade orders for DRAM allocations.
The answer lies in AI's need for cloud compute to run. Every ChatGPT question, Grok bikini deepfake, or Copilot MS Paint meme requires cloud compute to generate. This means that DRAM prices are just the beginning, with SSD storage expected to hit a shortage and batter consumer prices hard in the process.
Those who have decent PCs, gaming consoles, and laptops today may be insulated in the near term, but what about the long-term? What about when those components inevitably break down or get broken? Some analysts suggest RAM prices could stabilize in a year or two, but consumers are effectively competing with nation states for these components.
The future of computing is likely to revolve around cloud-based solutions, where users rent their compute from companies like Amazon Web Services or Microsoft Azure. As AI continues to transform industries, Bezos' words about the antiquated nature of local PC hardware seem more prescient than ever. The rise of AI-powered cloud computing in mobile apps is a trend that's here to stay.