[Dagulf795]

There’s a company called Archera doing this - they’re doing well, cash flowing.

https://archera.ai/

However, I think it’s 1. absolutely not insurance, and they’ll have to stop using that word when the lawyers get involved and 2. best understood as an alternative AWS plan to GIs and SPs. So essentially there’s a combination of discount/term/guaranteed capacity that the market wants and Amazon isn’t supplying, and Archera are supplying that synthetically. Cool business!

[nradov]

This sort of business model is generally known as "cost engineering". It can work, to an extent, when you're small enough to kind of fly under the radar. Once you grow enough to start impacting margins for the big players that actually control the resources then they become highly motivated to crush you.