The AI compute race is tightening. io.net CEO Gaurav Sharma explains why expensive GPU infrastructure is leaving early-stage AI startups behind.

AI costs are rising faster than returns, pushing Big Tech, startups and model providers to cut spending and raising new risks for margins, revenue and valuations.

Less than a year ago, our reporters kept hearing doubts about a group of startups called inference providers. Companies like Fireworks, Baseten and Together AI, which rent out…