Nutanix builds $20m AI cluster to cut model costs
Nutanix says it has built a $20 million on-premises AI cluster to curb escalating spending on services such as Microsoft Copilot and Anthropic’s Claude, expecting to recover the investment within a year. The move reflects a wider effort to control AI token costs by using open-weight models internally, while retaining access to frontier models or external infrastructure for workloads that need them.
The company is also moving closer to supporting Arm processors, arguing that lower-cost hardware and wider deployment options could help customers facing constrained availability and high equipment prices. Nutanix reported fourth-quarter revenue of $757 million, up 16 per cent year on year, while full-year revenue rose 12 per cent to $2.85 billion; it added 3,000 customers, many reportedly switching from VMware, but full-year net income was only $1.5 million.
- Nutanix built a $20m AI cluster to reduce token-based AI costs.
- It expects the investment to pay back within a year.
- Arm support could lower hardware costs for customers.
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Originally published by The Register as “Nutanix built $20m AI cluster to reduce use of Copilot and Claude, expects ROI in a year”.