One signal

AI infrastructure companies are caught in an unusual valuation gap: Simon Willison argues that software platforms Baseten and Fireworks are valued above infrastructure provider Nebius, despite high GPU prices and substantial backlogs.

His explanation is that investors are rewarding the platforms’ rapid growth, flexibility and private funding rounds. He expects the gap to narrow if GPU scarcity eases and falling token prices squeeze platform margins. It is a market argument, not a forecast with a guaranteed landing. But it captures a useful question for the AI boom: who keeps the stronger economics, the companies renting out computing power or the ones selling access to it?

Discuss: If GPU scarcity eases, will AI software platforms or infrastructure providers be better placed to hold on to their margins?

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