Generative AI Leader · Free Practice Question Medium
Question 8
A startup wants to begin developing a powerful generative AI application that requires significant computational resources, including high-end GPUs. They have limited funding and do not want to invest in purchasing and maintaining expensive physical servers in their office.
How does the fundamental model of cloud computing solve this critical business challenge?
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A
It eliminates the need for the startup to have its own data.
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B
It is a type of software that automatically writes the code for the AI application.
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C
It provides free access to all generative AI models.
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D
It allows the startup to rent access to powerful, managed infrastructure on a pay-as-you-go basis, avoiding large upfront hardware costs.
Reveal correct answer
Correct answer: D
Explanation
The core business problem is the high cost and complexity of acquiring and managing the physical hardware required for generative AI.
INCORRECT: It provides free access to all generative AI models.
While some models are open-source, cloud providers charge for the use of their computational resources (like GPUs) and for access to their most powerful proprietary models. Cloud computing is not free.INCORRECT: It eliminates the need for the startup to have its own data.
While cloud platforms provide public datasets, a startup will almost always need its own proprietary data to create a unique and competitive AI application. The cloud provides a place to store and process data, but it doesn't eliminate the need for it.INCORRECT: It is a type of software that automatically writes the code for the AI application.
This describes a specific application of generative AI (code generation), not the fundamental concept of cloud computing itself.CORRECT: It allows the startup to rent access to powerful, managed infrastructure on a pay-as-you-go basis, avoiding large upfront hardware costs.
This is the definition and core business benefit of cloud computing. It transforms a large capital expenditure (buying servers) into a flexible operating expenditure (paying only for resources used). This model gives the startup immediate access to state-of-the-art AI hardware without the burden of ownership, which is a critical enabler for innovation.
Discussion
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