An In-depth Exploration of AI Inference: From Concept to Real-world Applications

6 min readAug 5, 2024

How AI Inference Works

AI inference is the critical phase where a trained AI model is put to the test, using live data to make predictions or complete tasks. It’s the model’s moment of truth, gauging its ability to apply what it has learned during training to real-world scenarios. These could involve various tasks, such as accurately identifying spam in emails, transcribing conversations, or summarizing lengthy reports. How well an AI model utilizes its training to produce accurate and useful outcomes for its designated tasks determines its effectiveness in inference. The process of inference involves the AI model analyzing real-time data by comparing a user’s query with the information it processed and stored in its parameters, known as weights, during training. Whether it is filtering spam, transcribing speech to text, or extracting key points from lengthy documents, the model’s response varies depending on the task at hand. In essence, training and inference in AI are analogous to the human processes of learning and applying knowledge. Just as people draw on their past experiences to understand new words or situations, an AI model uses its training to interpret and make sense of new, unseen data.

Accelerating AI Inference with GPUs

The introduction of NVIDIA’s new generation of hardware at GTC 2023 demonstrated a significant advancement in AI inference acceleration through the use of GPUs in 2023. These advancements are especially relevant in running sophisticated AI models like OpenAI’s GPT-4, where high computational power is crucial for applications ranging from customer service chatbots to quality control in manufacturing.

NVIDIA’s latest H100 GPUs, based on the Hopper architecture, exemplify this advancement. They are integrated into the NVIDIA DGX H100 platform, which provides an immense 32 petaFLOPS of compute performance. This platform is also accessible in the cloud through partners like Oracle, Microsoft, and Amazon Web Services, indicating a shift towards more scalable and flexible AI computing resources. NVIDIA has introduced specialized hardware like the NVIDIA L4, a low-profile accelerator for AI and graphics capable of running models and encoding video up to 120 times faster than CPU-based platforms. The NVIDIA L40, another variant, is tailored for AI-powered image generation, underscoring the diverse applications of these new GPUs. Also, the NVIDIA H100 NVL is a special chip for real-time large language model (LLM) inference. It is made to work with huge LLMs like ChatGPT and can make inferences up to 12 times faster than with older models.

These developments in GPU technology are transforming AI inference, making it faster, more efficient, and more accessible for a range of applications, from the edge to the cloud. Integrating the recent advancements in GPU technology with Nosana’s use of blockchain technology for decentralized GPU computing further revolutionizes the AI inference landscape. Nosana leverages blockchain technology to create a distributed network of GPU resources, creating open access to high-powered computing for AI. The decentralized approach allows anyone to contribute their GPU resources to the network, which can then be utilized for AI inference tasks. Combining NVIDIA’s latest GPU advancements with Nosana’s blockchain-based platform enables more efficient and scalable AI processing, opening up new possibilities for AI applications across different industries. This synergy between cutting-edge GPU technology and blockchain-based decentralization by Nosana represents a significant step forward in making AI inference more accessible and powerful.

Real-world Applications: Where AI Inference Makes a Transformational Impact

Healthcare: AI inference is transforming medical diagnostics, enabling early disease identification and improving patient outcomes. Trained deep learning models analyze medical images, real-time patient vital signs, and electronic health records, providing invaluable insights for clinical decision-making and medical research.

Autonomous Vehicles: AI inference plays a pivotal role in autonomous vehicles, enabling them to navigate roads, detect obstacles, and make real-time decisions to ensure safety. By analyzing sensor data from cameras, radar, and lidar, AI models enable autonomous vehicles to perceive their surroundings and respond accordingly, paving the way for safer and more efficient transportation.

Fraud Detection: In the financial and e-commerce sectors, AI inference is extensively used to identify fraudulent activities in real-time, protecting businesses and consumers from financial losses. AI models analyze transaction data, identifying patterns indicative of fraudulent behavior, enabling timely interventions, and preventing financial losses.

Environmental Monitoring: AI inference enables accurate and timely monitoring of environmental conditions, aiding in addressing challenges like air pollution, climate change, and natural disasters. By analyzing data from satellites, sensors, and other sources, AI models provide insights that can inform policy decisions and conservation efforts.

Financial Services: AI inference enhances credit risk assessment, optimizes pricing strategies, and drives algorithmic trading decisions in the financial sector. AI models analyze vast amounts of financial data to assess creditworthiness, price products effectively, and make informed trading decisions, maximizing profitability and efficiency.

Customer Relationship Management (CRM): AI inference revolutionizes customer relationship management (CRM) by enabling personalized recommendations, churn prediction, and sentiment analysis. AI models analyze customer data, providing insights into customer preferences, predicting potential churn, and gauging satisfaction, enabling businesses to cultivate strong customer relationships and drive recurring business.

Predictive Maintenance in Manufacturing: AI inference plays a game-changer in predictive maintenance for the manufacturing industry. By analyzing real-time sensor data from machinery and equipment, AI models predict equipment failures before they occur, allowing manufacturers to schedule proactive maintenance, reducing downtime, preventing costly production interruptions, and extending equipment lifespan, maximizing productivity and overall operational efficiency.

The High Cost of AI Inference for Businesses and Developers

The high costs associated with AI inference for businesses and developers are a significant concern, and these costs are projected to escalate further due to the ongoing GPU shortage. GPUs, essential for efficient AI inference, are in high demand due to their ability to process large amounts of data rapidly. This demand is outpacing the supply, leading to a shortage that drives up costs. As AI models become more sophisticated, requiring more processing power, the reliance on GPUs increases, exacerbating the shortage and further inflating costs. NVIDIA’s announcement of its new generation of hardware at GTC 2023, designed specifically for AI inference tasks, underscores the growing demand and importance of powerful GPUs in this field. These GPUs are crucial for powering advanced generative AI models and are integral in applications ranging from customer service chatbots to manufacturing quality control, necessitating significant investment in computational resources.

For businesses and developers, this means not only a higher initial investment in purchasing GPUs but also increased operational costs due to the electricity required to power these high-performance units and the expenses related to data storage and management. The scarcity of GPUs also means businesses must compete for limited resources, often at premium prices. As AI advances and finds applications in more sectors, the demand for GPUs is expected to grow, potentially leading to even higher costs and challenging the scalability of AI projects for many businesses and developers.

Wrapping Up: Key Insights on AI Inference

In this chapter, we’ve explored the essentials of AI inference, where trained models apply learned patterns to new data, a cornerstone of practical AI applications. GPUs accelerate this process, making AI tasks faster and more effective, particularly in the enhanced role that Nosana’s cutting-edge platform highlights. Real-life applications, particularly in healthcare, demonstrate AI’s transformative potential. Yet, this comes at a significant cost, with the GPU shortage exacerbating expenses for businesses and developers. Nosana’s approach, leveraging blockchain for decentralized GPU computing, addresses some of these challenges, illustrating the evolving and multifaceted nature of AI development.

Stay tuned for the next chapter, which explores the difference between GPUs and CPUs.

About Nosana

Nosana is an open-source cloud computing marketplace dedicated to AI inference. Their mission is simple: make GPU computing more accessible at a fraction of the cost. The platform has two main goals: providing AI users with flexible GPU access and allowing GPU owners to earn passive income by renting out their hardware.

By offering affordable GPU power, Nosana enables AI users to train and deploy models faster without expensive hardware investments, all powered by the $NOS token. Access compute for a fraction of the cost or become a compute supplier at Nosana.io.

Originally published at https://nosana.io.