Latent Space· Basil Chatha·· 9d agoSelected
Modal CEO Erik Bernhardsson explains why AI compute demand is non-rectangular and how sandboxes drive growth
Original source: Latent SpaceRead original
AI brief
Modal CEO Erik Bernhardsson argues that AI compute demand rarely follows fixed-capacity contracts, instead fluctuating throughout the day. He describes the company's strategy of pooling demand across thousands of customers to provide elastic compute slices, noting that sandboxes now comprise roughly a third of Modal's revenue following unexpected growth spurred by coding agents and reinforcement learning.
Why it matters
The interview provides insight into the shifting economics of AI infrastructure, explaining how Modal's approach to elastic compute and sandbox growth challenges traditional capacity models and impacts how developers and agents interact with AI resources.
Source: Latent Space · latent.space