Artificial intelligence (AI) and machine learning (ML) are reshaping industries and unlocking unprecedented opportunities. However, the widespread adoption of these technologies hinges on addressing a critical issue: the accessibility of GPUs.
Our latest whitepaper reveals insights from over 1,400 professionals across AI companies, research institutions, and healthcare organizations, highlighting the key barriers and opportunities to making AI accessible to all.
What are the challenges of GPUs?
The findings from our whitepaper reveal five core challenges preventing equitable access to GPUs and, by extension, the broader democratization of AI.
1. High costs
GPUs, especially high-performance models like NVIDIA’s H100 and A100, come with a hefty price tag that makes them inaccessible to many organizations. Smaller enterprises and research institutions often struggle to allocate sufficient budget for AI infrastructure, leading to a technological divide that limits their ability to compete and innovate.
Hourly costs for NVIDIA H100 GPUs, a key component for AI workloads, differ significantly across cloud providers:
Prices are based on NVIDIA H100 GPUs with a 24 month commitment. Prices correct as of December 2024 | Source Ben Baldieri
2. Infrastructure limitations
Legacy systems and the difficulty of integrating GPUs into existing workflows slow down adoption across industries. For healthcare organizations, regulatory compliance and data privacy concerns further complicate infrastructure upgrades.
Our research found that AI companies invest heavily in infrastructure, with 65% allocating 20-60% of their AI/ML budgets to infrastructure. This substantial investment reflects AI's central role in their business models and the competitive pressure to maintain technological advantages.
3. Supply chain shortages
The exponential demand for GPUs has created widespread supply chain bottlenecks. Our research shows that 85% of organizations have experienced project delays due to GPU shortages, with significant impacts on their ability to innovate and stay competitive.
4. Expertise shortages
The rapid adoption of AI technologies has created a significant demand for skilled professionals, leading to expertise shortages that hinder scalability and project execution. Our research found that 34% of organizations are being held back by enterprise shortages, a critical barrier for organizations looking to adopt and scale AI technologies. Expertise shortages lead to inefficiencies, delays, and underutilization of available hardware resources.
Some common issues that we see due to expertise shortages include:
- Resource allocation issues: Organizations often face challenges balancing budgets between acquiring hardware and investing in talent development, with many prioritizing infrastructure over upskilling their workforce.
- Impact on innovation cycles: The lack of skilled personnel creates bottlenecks in project execution, resulting in extended development timelines and missed opportunities for innovation in competitive markets.
5. Vendor dependency
The GPU market is heavily dominated by NVIDIA, which limits competition and drives up prices. Dependence on a single provider exacerbates supply chain issues, as organizations have few alternatives for sourcing high-performance GPUs.
What is Civo doing to help?
Civo is redefining GPU accessibility with a customer-first approach centered on affordability, flexibility, and seamless integration. Offering GPU rates starting at just $0.79 per hour, Civo undercuts traditional providers significantly, enabling organizations of all sizes to participate in the AI revolution.
“Reducing our GPU fees is about leveling the playing field for businesses. By offering the most affordable GPU pricing, we’re empowering businesses of all sizes to tap into the immense potential of AI without being held back by high infrastructure costs. We believe that access to cutting-edge technology should not be a barrier to innovation, and that every company should have the opportunity to leverage advanced and secure cloud computing technology.” - Josh Mesout, Chief Innovation Officer at Civo
By eliminating hidden fees such as storage and network egress charges, Civo provides transparent pricing that empowers businesses to reallocate budgets toward innovation, talent acquisition, and scaling their operations.
👉 Learn more about this research in our latest whitepaper: AI for All: A Cross-Sector Study of GPU Adoption and Democratization
