Public cloud providers are fumbling the AI opportunity [Video]

Their current success and growth are thanks to AI adoption, but unsustainable costs and viable alternatives may turn enterprises away in the longer term.

Credit: Thomas Bethge / Shutterstock

Generative AI is exploding and will continue to do so. As such, both on-premises and public cloud providers have seen a boom in demand for their AI wares, which will likely continue for at least the next five years.

Cloud is, of course, a core benefit of companies’ intererest in AI. However, this growth spurt may not continue as many believe. CIOs and CFOs are complaining loudly and often about unexpectedly high cloud expenses—about 2.5 times more expensive than they anticipated. With cloud AI on the horizon, they are concerned about the potential for larger, even more unpredictable cloud bills in the future. Everyone wants to find cost-effective alternatives.

The real opportunity in AI may not lie in public clouds, at least not how they’re currently positioned. Despite …