THE DECODER·3 min read

The AI industry is running out of compute, with outages, rationing, and rising GPU prices

AI industry's compute capacity crisis escalates with rising costs.

The AI industry is grappling with a significant compute capacity crisis driven by surging demand for agentic AI. Anthropic is facing frequent outages, prompting enterprise customers to migrate to OpenAI, which is also feeling the pressure and has decided to discontinue its Sora video generation app to allocate resources more effectively. Meanwhile, GPU prices have skyrocketed nearly 50%, exacerbating the situation as demand continues to outpace supply.

Key Takeaways

  • 1.

    Anthropic's API uptime is just 98.95%, significantly below the industry standard.

  • 2.

    OpenAI's GPU prices surged 48% in two months, impacting service availability.

  • 3.

    Token usage on OpenAI's API skyrocketed from 6 billion to 15 billion per minute.

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The AI industry is running out of compute, with outages, rationing, and rising GPU prices | Trace