Vivold Consulting

Why it is vital that you understand the infrastructure behind AI

Key Insights

An exploration of AI infrastructure decisions, highlighting DeepSeek's efficient model as a case study.

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Understanding AI infrastructure is crucial as businesses strive to implement effective AI strategies amidst rising demand and vast resource needs.

Key Considerations in AI Deployment

- Infrastructure choices: computing power, data storage, chip selection, energy efficiency
- Department-specific needs: AI solutions vary by function, requiring tailored infrastructure

Critical Components

- AI compute – determines performance
- Data centers – on-site, leased, modular, or cloud-based; impact on scalability, security, and latency
- Cloud services – flexibility from hyperscalers (Amazon, Microsoft), but risk of vendor lock-in
- Hybrid models – combine proprietary and cloud infrastructure for customization and resilience
- Specialized setups – co-location and edge computing for specific performance or sovereignty needs

Technological Advancements

- Hardware: GPUs, TPUs, neuromorphic chips improving efficiency and performance
- High-bandwidth memory: addresses data bottlenecks

Challenges

- Sustainability and energy demands – data centers consume substantial power
- Cooling and power sourcing innovations – crucial for future scalability

Industry Trends

> “Smaller, efficient AI models can deliver strong performance.”

- Example: China’s DeepSeek shows the potential of efficient models to shift focus from high-capacity approaches
- Greater accessibility for businesses with limited resources

Success Factors

- Compatibility
- Flexibility
- Pace of adoption