Nvidia's agentic AI push; Snowflake cuts inference costs
Today on Product Saturday: Nvidia and Snowflake try to get more enterprises on the AI train by focusing on safety and costs, and the quote of the week.
Today: Amazon CTO Werner Vogels closes AWS re:Invent 2024 with advice on how to make complex things simple, OpenAI unveils an absurdly expensive subscription plan for its latest model, and the latest enterprise moves.
Welcome to Runtime! Today: Amazon CTO Werner Vogels closes AWS re:Invent 2024 with advice on how to make complex things simple, OpenAI unveils an absurdly expensive subscription plan for its latest model, and the latest enterprise moves.
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LAS VEGAS — By tradition, Amazon CTO Werner Vogels' Thursday keynote speech at re:Invent speaks to the concerns of software developers and system architects who have to actually implement the cloud services purchased by their bosses. Last year, amid a sharp pullback in technology spending, Vogels urged attendees to refocus their attention on controlling costs, but now that companies are once again spending money on new enterprise tech services, those practitioners are once again grappling with the complexity of managing growth.
"Software becomes irrelevant if we don't evolve it," Vogels said, pointing out that companies who fail to add new features and functionality to their applications will quickly become stale as new technology changes the expectations that internal and external customers have for the tools they need to get the job done. The problem is that whenever new components are added to an existing application, it creates enormous potential for something to go wrong in an unexpected way.
Vogels proposed several ways that companies can approach "simplexity," which is a terrible word that for the purposes of this discussion we'll pretend actually exists. Complexity may be inevitable, but there are steps companies can take to make their operations as simple as possible, he said.
Still, Vogels acknowledged that AWS itself has a role to play in making life simpler for its customers. Over the years he has tended to fall on the "primitives, not frameworks" side of the long-running internal AWS debate over how to build cloud infrastructure, but pointed out that tools like managed databases can make life easier for a lot of customers.
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OpenAI just marked its second anniversary as one of the most talked-about tech startups in recent history following the Nov. 2022 launch of ChatGPT, and Thursday it announced that its o1 "reasoning" model is now generally available. The final version of that model isn't quite the next-generation model that many expected OpenAI to release this year, but the company said it would be better than the preview version of o1 at coding and math, according to The Verge.
But OpenAI also introduced a new ChatGPT Pro subscription tier for a whopping $200 a month. "As AI becomes more advanced, it will solve increasingly complex and critical problems. It also takes significantly more compute to power these capabilities," OpenAI said as a way of justifying that price.
The new tier allows for "unlimited" access to several of its latest models as well as "o1 pro mode, a version of o1 that uses more compute to think harder and provide even better answers to the hardest problems," the company said. Still, that price point might be difficult to justify for anyone other than the folks working at AI startups that have raised significant amounts of money in the last year.
Andy MacMillan is the new CEO of Alteryx, joining the AI analytics company after more than six years as CEO of UserTesting.
Bill Staples is the new CEO of GitLab, replacing Sid Sijbrandij, who is stepping down for health reasons after being diagnosed with cancer last year.
Srinivasan Raghavan is the new chief product officer at Freshworks, following almost two years in a similar role at RingCentral.
Benoit Fouilland is the new chief financial officer at Celonis, joining the company after serving in similar roles at Contentsquare and Firmenich.
Sergej Epp is the new chief information security officer at Sysdig, and Shanta Kohli was promoted to chief marketing officer.
HPE beat Wall Street expectations for revenue and profit thanks to increased demand for AI servers, which increased by 16% during the quarter.
Broadcom reversed plans to handle the top 2,000 VMware accounts itself and will now only take on the top 500, which should placate partners who were up in arms about losing access to those lucrative accounts.
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