There's a big issue with a lot of thinking about these valuations, which is that LLM inference does not need the 5-nines of uptime guarantees that cloud datacenters provide. You are going to see small business investors around the world pursue the following model:
- Buy an old warehouse and a bunch of GPUs
- Hire your local tech dude to set up the machines and install some open-source LLMs
- Connect your machines to a routing service that matches customers who want LLM inference with providers
If the service goes down for a day, the owner just loses a day's worth of income, nobody else cares (it's not like customers are going to be screaming at you to find their data). This kind of passive, turn-key business is a dream for many investors. Comparable passive investments like car washes, real estate, laundromats, self-storage, etc are messier.
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