In this podcast, Elad Gil talks with Erik Bernhardsson, CEO of Modal, a cutting-edge serverless cloud platform designed for AI applications. The discussion follows Bernhardsson’s journey from creating Spotify's recommendation system to launching Modal, fueled by his passion for enhancing AI infrastructure. He highlights Modal's mission to offer on-demand GPU access, streamline cloud development, and support efficient serverless GenAI applications, with examples including their partnership with the music generation company, Suno. A major takeaway from the conversation is Bernhardsson's vision for the future of AI, which emphasizes the need for more adaptable GPU capacity. He advocates for shifting from long-term contracts to usage-based models, which can improve resource efficiency and reduce costs for startups. Listeners will gain valuable insights into the challenges and opportunities within AI infrastructure, especially regarding GPU usage and the development of AI-native data storage solutions.