Why AI Compute Comes in Rectangles — Erik Bernhardsson, Modal

AI workloads don’t run in neat, three-year rectangles. But much of the GPU market still sells capacity that way. Modal CEO Erik Bernhardsson joins Latent Space to explain how Modal pools compute, scales AI workloads and thinks about the financial risks of building a GPU cloud. Erik takes us from building Spotify’s recommendation system to founding Modal, then digs into GPU supply, alternative accelerators and the surprising growth of agent sandboxes. We also discuss sandbox security, developer experience in the age of agents, forward-deployed engineers and why Modal makes code review optional