Patel says storage vendors Weka and Vast make high margins while drive vendors make no money.
“But then there's also, on the storage side, the drive vendors don't make any money. But Weka and Vast, I mean, look at their pricing models. They make crazy margin on storage.”
Patel says storage vendors Weka and Vast make high margins on multimodal AI requiring larger storage clusters.
“They make crazy margin on storage. And as you get to more multimodal models, image generative image and video robotics, you have much larger storage clusters.”
Patel says Weka and Vast make high margins on storage for multimodal AI workloads despite drive vendors making nothing.
“But then there's also, on the storage side, the drive vendors don't make any money. But Weka and Vast, I mean, look at their pricing models.”
Patel reports memory prices have quadrupled over the past year, with SSDs up three to four times.
“Memory has like four x in price over the last like year, and it's gonna continue to go up. And then now storage SSD, right?”