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Most companies using AI are ‘lighting money on fire,’ says Cloudflare CEO Matthew Prince

Dec 13, 2023 - fortune.com
Matthew Prince, CEO of Cloudflare, criticized the massive investments in AI by companies across industries, stating that most are simply "lighting money on fire." Speaking at the Fortune Brainstorm AI conference, Prince also criticized major cloud providers, particularly Amazon, for making it expensive to move data and thereby artificially constraining access to GPUs, which he sees as a major concern for the AI industry.

On the other hand, Jennifer Tejada, CEO of PagerDuty, expressed a more optimistic view, emphasizing the importance of keeping AI strategies simple and training the workforce for AI transformation. She suggested that companies should start with their employees and create a "toil bucket," a list of tasks they hope AI could automate. She believes that employees who understand the business problems well often come up with the most practical use cases for AI.

Key takeaways:

  • Matthew Prince, CEO of Cloudflare, criticized companies investing heavily in AI, suggesting they are wasting their resources. He also criticized major cloud providers, particularly Amazon, for artificially constraining access to GPUs.
  • Prince argued that the high costs associated with moving data from one region or cloud provider to another are limiting competition in the AI space.
  • Jennifer Tejada, CEO of PagerDuty, expressed a more optimistic view, emphasizing the importance of keeping AI strategies simple, bridging the gap between research and product delivery, and preparing the workforce for AI transformation.
  • Tejada suggested that companies should start AI implementation from the ground up, encouraging employees to identify tasks they dislike that could potentially be automated by AI.
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