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Back to Why AI Compute Comes in Rectangles — Erik Bernhardsson, Modal CEO, with Erik Bernhardsson & Vibhu Sapra.

Why Did Modal Rebuild Its Tools for Generative AI?

Erik Bernhardsson says Modal rebuilt its tools for generative AI because Kubernetes and Docker were made for a steady back-end workload. The systems expect an even number of requests and can run at low utilization, since CPUs are normally pretty cheap and cost is not the main worry. Generative AI brings very expensive GPUs, a need to manage capacity and utilization, and very large models that must load over the network into the CPU and then into the GPU. The older generation of tools was not built for that work, and a wrapper on top of them cannot deliver the new software. Modal had to start over a little bit from scratch.

Over the last few years Modal built its own file system, CPU snapshotting, GPU snapshotting, an autoscaler, a scheduler, and capacity management tools. Supplying hundreds, thousands, and tens of thousands of GPUs has always been a challenge, so Modal went multi-region very early. Modal treats capacity management as one big pool over the entire world.

Bugs, outages, and scaling issues have shown up across Modal's history. Recently uptime has basically reached four or five nines, and 100% uptime remains the aim.

Grokipedia·Kubernetes

Transcript

Why AI Compute Comes in Rectangles — Erik Bernhardsson, Modal CEO ·

Latent Space: The AI Engineer Podcast

More from this episode

  1. What Is Modal's Killer App?Erik Bernhardsson says Stable Diffusion turned out to be the killer app for Modal, the platform he built to make it easy to run code in the cloud.
  2. Why Are AI Hardware Prices Going Up?Erik Bernhardsson says AI hardware prices are going up because capacity is tight while big buyers take as much supply as they can, even though hardware prices…
  3. Why Won't Erik Bernhardsson Buy All the Compute He Can?Erik Bernhardsson will not buy up as much compute capacity as possible just because demand for intelligence looks basically infinite.
  4. How Do Neoclouds Expand So Quickly?Erik Bernhardsson says neoclouds expand quickly by pre-selling chips they have not bought yet.
  5. What Share of Revenue Do Modal Sandboxes Make?Erik Bernhardsson says Modal Sandboxes now make up about a third of revenue, and the team considers them the company's second product.
  6. Is Smaller AI Training Underserved?Erik Bernhardsson says smaller AI training is an underserved market. Huge training runs go to Neo cloud mega deals for 100,000 GPUs.
  7. Why Does Modal Snapshot Sandboxes?Erik Bernhardsson sees snapshotting as the way a long-running agent spins a sandbox up in 100 milliseconds, runs a few commands, shuts it down, and snapshots…
  8. Was Modal Hacked in the Hugging Face Incident?Erik Bernhardsson says Modal itself was not hacked in the Hugging Face incident.
  9. How Does Modal Treat Code Reviews?Erik Bernhardsson treats code review at Modal as optional.
  10. What Is the Best Use of New Cash at Modal?Erik Bernhardsson says the best use of new cash at Modal today is capacity prepayments. Modal is ramping up capacity very aggressively.
  11. How Many People Work at Modal?Erik Bernhardsson says Modal recently crossed 200 people and will probably hit 250 by the end of the year.
  12. Why Does AI Compute Come in Rectangles?Erik Bernhardsson says AI compute comes in rectangles because a typical GPU contract sells a fixed block of chips for about three years, starting three to six…

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