Model distillation might be the most important shift happening in AI right now—and it’s reshaping the entire tech industry. It's increasingly becoming a MASSIVE topic. DeepSeek's R1 model released yesterday only reinforced thisModel distillation is a process where a smaller, simpler model (the "student") is trained to replicate the behavior and capabilities of a larger, more complex model (the "teacher"). This is achieved by using the teacher model's outputs (e.g., predictions or reasoning processes) as training data, allowing the student to inherit high performance with reduced size and computational demands.So why is this important? For large AI labs, capital and scale were moats. It took literally billons of dollars of compute and data to pre-train a state-of-the-art model. Let alone al

$Amazon.com(AMZN)$ is having their annual conference ReInvent this week, and for infra nerds like me, it's fun to dig in on all of the announcements! Here's a quick summary of what they announced in their keynotes across:1) Compute EC2 was a foundational product for AWS, and the OG compute instance. Today, AWS has ~850 compute instances types across 126 different families (for instance, they have ~14 instance types just for Nvidia GPUs). From 1 instance type to ~850 today! They also started building their own chips (Gravitron in 2018, Inferentia in 2019 and Trainium in 2022). They disclosed a cool stat - in 2019 AWS was a $35b business. Today - there is as much compute running on Gravitron in the AWS fleet than all of compute at AWS in 2019!This w

This week in enterprise software: Top 10 SaaS Cloud multiples as of today's market close $Palantir Technologies Inc.(PLTR)$ $Samsara, Inc.(IOT)$ $CrowdStrike Holdings, Inc.(CRWD)$ $ServiceNow(NOW)$ $CLOUDFLARE INC(0A3Z.UK)$ $Guidewire(GWRE)$ $Shopify(SHOP)$ $Palo Alto Networks(PANW)$ $Datadog(DDOG)$ $Onestream Inc(OS)$ ImageThis week on Clouded Judgement: A Shift to Gr

Cloud Giants Update: AWS ( $Amazon.com(AMZN)$ ): $110B run rate growing 19% YoY (last Q grew 19%)Azure ( $Microsoft(MSFT)$ ): ~$66B run rate (estimate) growing 34% YoY (last Q grew 33% cc) $Alphabet(GOOG)$ $Alphabet(GOOGL)$ Google Cloud (includes GSuite): $45B run rate growing 35% YoY (last Q grew 29%, neither are cc)ImageAggregate quarterly net new ARR by the hyperscalers Image $Amazon.com(AMZN)$ AWS at a $110B run rate growing 19% Quarterly YoY growth trends below.ImageQuarterly net new ARR addedImagePretty incredible commentary from Microsoft yesterday:"we're excited that on

Azure at a ~$66B run rate growing 34% constant currency (33% overall)They recently restated Azure, so some of the historical comparisons won't be apples to apples. PowerBI and EMS are no longer included in Azure which represented ~$20B of run rate last QQuarterly YoY growth trends below $Microsoft(MSFT)$ ImageNot exact figures, but rough estimates on Azure AI Services quarterly run rate below (12pts of growth this Q). They only disclose the % of growth to a full round number (no decimal point), so definitely not exactImageBelow is an estimate of net new ARR added over the last few quarters.ImageYoY growth trends in net new ARR per quarterImage