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  5. Compute
Infrastructure & Hardwareaka AI Compute

Compute

Compute is the raw processing capacity — measured in GPU/chip-hours, FLOPs, or dollars spent on infrastructure — used to train or run AI models, and one of the three primary inputs (alongside data and algorithms) that determine model capability.

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Compute is scarce and expensive enough that access to it functions as a competitive moat: labs sign multi-year, multi-billion-dollar deals for GPU or TPU capacity, and 'compute-constrained' is a common explanation for why a lab trains fewer or smaller models than its research roadmap would otherwise support. Regulatory frameworks like the EU AI Act use compute thresholds (measured in total training FLOPs) as one trigger for extra obligations on 'systemic risk' models, treating raw compute spent on training as a rough proxy for capability and risk.

Related terms

AI ChipAI AcceleratorDistributed TrainingLoad BalancerParameter ServerPower Consumption