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Index Ventures Beats Competition with AI GPU Tech |


Tackling the entry into laptop science for AI startups

This week, New York Cases sheds gentle on the challenges AI startup founders face in securing the computing energy they crave. Demand for graphics rendering fashions (GPUs) has skyrocketed as largest corporations and rich nations scramble to stockpile them, leaving early-stage startups in a single place. Startups are turning to varied measures, together with searching for assist from software program distributors and exploring authority apps like Entry.

Nonetheless, one company agency, Index Ventures, has adopted a specific technique to unravel this drawback. They’ve partnered with Oracle to provide their portfolio corporations with GPUs to make sure they do not seem hampered by shortages. This partnership offers these startups entry to sought-after chips like Nvidia’s H100 and A100 chips. Erin Value-Wright, a fellow at Index Ventures, not too long ago launched this partnership and its significance for early-stage AI corporations in an interview.

Accomplice with Oracle to interrupt down the barrier to entry

Erin Value-Wright highlighted the issue AI corporations face in relation to entry to computing energy, particularly GPUs. Whereas the associated cost should not be the first concern, the principle hurdle is {that a} good chunk of GPU capability is already allotted to the largest players within the trade. These gamers make main upfront commitments with cloud distributors, leaving little availability for early-stage startups. This shortage ends in protracted alternatives for enchancment, typically lasting months or maybe a yr, earlier than GPUs may be discovered at these startups.

Additionally, early stage corporations might wrestle to find out their GPU wants as they’re nonetheless within the technique of defining their merchandise. This a part of the invention gives an additional layer of complexity and draw back for these startups. To deal with this, Index Ventures has partnered with Oracle to provide GPUs to its early-stage portfolio corporations. By eradicating the barrier to entry, these startups can take note of their core enterprise from day one. The last word aim, nevertheless, is for these corporations to transition into their very own GPU clusters, as Index Ventures goals to enhance the holding space with out changing into a long-term provider of large GPU clusters.

The genesis of the partnership with Oracle

Based mostly on Erin Value-Wright, the partnership with Oracle was born out of a notion that early-stage corporations should not be pressured to differ their enterprise fashions or fundraising methods merely to get into GPU. Index Ventures acknowledged its distinctive place and leveraged its relationships to supply value-added suppliers to its founders.

Value-Wright didn’t disclose particular particulars about whether or not Index Ventures discounted or instantly bought chips from Oracle. Nonetheless, he hated that the partnership includes Index Ventures making a dedication on behalf of its startups and footing the cloud invoice, with Oracle managing the cluster. On this partnership, portfolio corporations buy entry to the GPU cluster with out paying any direct value.

Non-unique relationship and future prospects

Value-Wright clarified that the Oracle partnership should not be distinctive to Index Ventures. Utterly completely different firm corporations are welcome to seek out comparable preparations. She stated the partnership advantages Oracle by permitting them to attach with potential future startup stars. To facilitate long-term relationships between startups and main cloud suppliers equivalent to Oracle and AWS, Index Ventures actively guides their corporations in subscribing to their devoted cloud choices.

Index Ventures has a formidable portfolio of AI and ML corporations, with greater than 20 on this house. Notable examples embody Cohere, backed by Oracle and Nvidia, and Mistral AI, a French firm that not too long ago raised a big spherical of seed funding. Value-Wright emphasised that the trail forward for AI funding stays at its preliminary ranges, with a rising emphasis on constructing the infrastructure wanted to help the clever implementation of AI throughout a number of industries.

Guarantee differentiation and competitors amongst AI corporations

So far as constructing optimistic their AI corporations do not overlap, Value-Wright pits the approach towards opponents in different industries. Whereas AI is normally seen as a category of its personal, he predicts that within the close to future, AI will turn into an elemental a part of every bit of software program, software program program, and web site. Simply because not all SaaS corporations are created equal, whether or not or not they share sure elements like a database or front-end, AI corporations may need distinctive options and features.

Value-Wright believes the potential for AI is big, and because the enterprise evolves, the differentiation between AI corporations will turn into extra apparent. The primary focus now could also be to construct the required infrastructure and uncover the utilization circumstances that can drive the widespread adoption of AI selections.


The scarcity of GPUs poses an enormous drawback for early-stage AI startups, stopping their entry to the computational vitality required for product enchancment and training fashions. In response, company agency Index Ventures has partnered with Oracle to provide GPUs to its portfolio corporations, eradicating the barrier to entry and permitting startups to concentrate to their core work. This partnership signifies a shift within the financing panorama, prioritizing the help and enchancment of early-stage AI corporations. Because the AI ​​enterprise evolves, the necessity for infrastructure, truthful utilization circumstances, and differentiation amongst AI corporations will drive the subsequent portion of enchancment.

Frequent questions

1. How does the partnership between Index Ventures and Oracle profit AI startups?

The partnership allows early-stage AI startups to enter GPUs, addressing the issue of restricted computing energy. By eliminating this barrier, startups can concentrate on their core enterprise from day one and speed up their enchancment course of.

2. Will completely different corporations be capable of replicate this partnership?

Optimistic, the partnership shouldn’t be unique to Index Ventures. A number of enterprise corporations are free to hunt out comparable preparations with Oracle or different cloud distributors to help their portfolio corporations.

3. How does Index Ventures guarantee its AI corporations don’t overlap?

Index Ventures acknowledges that synthetic intelligence will turn into an integral a part of almost all software program packages and functions. Nonetheless, the differentiation between AI corporations will emerge as they develop distinctive selections and options particular to their respective markets.

4. What are the long run prospects for AI funding?

Whereas AI funding stays in its infancy, there’s a rising emphasis on constructing the obligatory infrastructure to help within the clever implementation of AI selections. Within the coming months, corporations will prioritize utilization circumstances, uncover returns on financing, and construct prototypes past real-world features.


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