
Everyone's Talking About AI Compute—But It All Starts With Storage
Dave Friend is the cofounder and CEO of Wasabi.
When you think of AI, there are probably many things that come to mind, such as how to use it, where it's headed and what powers it. The conversation typically centers around compute—A.K.A. all the CPUs and GPUs you hear about when discussing AI. While compute is critical, there is a significant aspect of AI that is often overlooked: data. Although it may not be widely discussed, the reality is that these massive, unstructured and ever-growing data sets are what are truly driving global AI growth.
As AI models become larger and more sophisticated, accessing the necessary data to train them is becoming a significant challenge for users. This is due to multiple factors, including the ever-increasing amount of data needed to train AI models. To make matters worse, hyperscaler storage that many rely on is expensive, overly complex and not optimized for the accessibility and performance that AI workflows demand. Additionally, enterprise data used to train AI systems is becoming a favored target for malicious actors. All of these factors combine to make AI adoption incredibly challenging, expensive and time-consuming.
The reality is that most companies aren't struggling with AI compute limitations. They're hitting walls because they can't store, access and manage the data quickly, securely and affordably enough to support real-time inference, fine-tuning or long-term retention.
If AI needs to run efficiently and cost-effectively, so does the data it learns from. To address these growing problems and fully leverage the benefits AI has to offer, organizations should implement a scalable cloud storage solution that provides cost-effectiveness, security and hybrid capabilities.
Best Practices And What Leaders Should Expect
However, not all data storage providers are created equal. The cloud giants that dominate the industry charge exorbitant fees to access data, making it more difficult, expensive and time-consuming for users. This makes training AI and storing the data that AI gleans a costly and challenging undertaking. To address this, organizations should seek out affordable cloud storage providers that don't charge these fees. This will enable them to easily access their data in a way that makes AI training as seamless and cost-effective as possible.Additionally, these storage buckets can be easily scaled up and down depending on need. This is ideal for training AI, as the storage will need to hold both the data required to train AI models and store the resulting information. Being able to scale up easily and down will ensure that an organization is adequately prepared for AI models and can adjust as needed.
Just as important as where you store the data is ensuring it is stored securely. Cyberattackers are increasingly going after enterprise data due to its vital role in AI operations. As a result, it is crucial for IT leaders to ensure that the storage solutions they choose are adequately protecting their data. When selecting a provider, organizations should remember to look for one that offers robust data protection offerings that ensure the storage sets are impenetrable. Organizations should also take notice that the data is hidden from bad actors in the event of a breach to prevent deletion or ransomware threats. These are critical for avoiding an attack and protecting critical enterprise data.
Key Features And Approaches To Security
An essential part of a secure data management program is immutable backups, which prevent a malicious actor from modifying or deleting the stored data. Immutable backups are an air-gapped solution that isolates data from potential threats such as ransomware or accidental deletion. IT leaders should consider immutable backups to ensure their data is impenetrable and cannot be encrypted or deleted. Additionally, no secure cloud management program would be complete without employee training on cyber protection. By regularly updating cybersecurity best practices for employees and providing training, organizations can effectively prevent malicious actors from breaching their networks and accessing critical data.
An approach that combines cost effectiveness and security is hybrid storage, which involves storing data in different methods and locations. This can include one copy in the cloud, one on-premises, and one on a hard drive. Incorporating cost-effective solutions like the cloud reduces expenses, while having the data in multiple locations allows it to be readily available in case of a cyberattack. For AI training, data can be readily available in the cloud, but it can also be stored on-premises for added security.
While it is easy to get caught up in the AI boom, organizations must take their time incorporating the emerging feature. Technology decision-makers should ensure they prioritize cost-effective and secure ways to store the data necessary for proper AI training. Without it, they may be left behind their competitors in the AI adoption race.
Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
19 minutes ago
- Yahoo
Ready Capital Corporation (RC) Declares Quarterly Dividends
Ready Capital Corporation (NYSE:RC) is one of the 10 best-value penny stocks to buy, according to analysts. On June 14, the company's board of directors approved a cash dividend of $0.125 per share of common stock. The dividend will be paid to shareholders on July 31, 2025, as of the close of business on June 30, 2025. Copyright: bugtiger / 123RF Stock Photo In addition, the board declared a quarterly cash dividend on its 6.25% Series C Cumulative Convertible Preferred Stock and 6.50% Series E Cumulative Redeemable Preferred Stock. It also declared a dividend of $0.390625 per share of Series C Preferred Stock, payable to Series C Preferred stockholders on July 15, 2025. The quarterly dividends come on the heels of Ready Capital generating a net income of $81.97 million for its first quarter of 2025. It was a significant turnaround from a net loss of $74.17 million for the same quarter last year. Ready Capital Corporation (NYSE:RC) is a real estate finance company that originates, acquires, finances, and services commercial real estate loans for small to medium-sized businesses. It also offers small business loans through the SBA 7(a) program and provides financing for commercial real estate, including agency multifamily, investor, and bridge loans. While we acknowledge the potential of RC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
19 minutes ago
- Yahoo
Can CrowdStrike Stock Keep Moving Higher in 2025?
CrowdStrike's all-in-one Falcon cybersecurity platform is increasingly popular for businesses, and it has a substantial long-term growth runway. However, CrowdStrike stock is trading at a record high following a 40% gain this year, and its valuation is starting to look a little rich. Investors hoping for more upside in 2025 might be left disappointed, but there is still an opportunity here for those with a longer time horizon. 10 stocks we like better than CrowdStrike › CrowdStrike (NASDAQ: CRWD) is one of the world's biggest cybersecurity companies. Its stock has soared 40% year to date, but its current valuation might be a barrier to further upside for the remainder of the year. With that said, investors who are willing to take a longer-term view could still reap significant rewards by owning a slice of CrowdStrike. The company's holistic all-in-one platform is extremely popular with enterprise customers, and its annual recurring revenue (ARR) could more than double over the next six years based on a forecast from management. The cybersecurity industry is quite fragmented, meaning many providers often specialize in single products like cloud security or identity security, so businesses have to use multiple vendors to achieve adequate protection. CrowdStrike is an outlier in that regard because its Falcon platform is a true all-in-one solution that allows its customers to consolidate their entire cybersecurity stack with one vendor. Falcon uses a cloud-based architecture, which means organizations don't need to install software on every computer and device. It also relies heavily on artificial intelligence (AI) to automate threat detection and incident response, so it operates seamlessly in the background and requires minimal intervention, if any, from the average employee. To lighten the workload for cybersecurity managers specifically, CrowdStrike launched a virtual assistant in 2023 called Charlotte AI. It eliminates alert fatigue by autonomously filtering threats, which means human team members only have to focus on legitimate risks to their organization. Charlotte AI is 98% accurate when it comes to triaging threats, and the company says it's saving managers more than 40 hours per week on average right now. Falcon features 30 different modules (products), so businesses can put together a custom cybersecurity solution to suit their needs. At the end of the company's fiscal 2026 first quarter (ended April 30), a record 48% of its customers were using six or more modules, up from 44% in the year-ago period. It launched a new subscription option in 2023 called Flex, which allows businesses to shift their annual contracted spending among different Falcon modules as their needs change. This can save customers substantial amounts of money, and it also entices them to try modules they might not have otherwise used, which can lead to increased spending over the long term. This is driving what management calls "reflexes," which describes Flex customers who rapidly chew through their budgets and come back for more. The company says 39 Flex customers recently exhausted their budgets within the first five months of their 35-month contracts, and each of them came back to expand their spending. It ended the fiscal 2026 first quarter with a record $4.4 billion in ARR, which was up 22% year over year. That growth has slowed over the last few quarters, mainly because of the major Falcon outage on July 19 last year, which crashed 8.5 million customer computers. Management doesn't anticipate any long-term effects from the incident (which I'll discuss further in a moment) because Falcon is so valuable to customers, but the company did offer customer choice packages to affected businesses that included discounted Flex subscriptions. This is dealing a temporary blow to revenue growth. Here's where things get a little sticky for CrowdStrike. Its stock is up over 40% this year and is trading at a record high, but the strong move has pushed its price-to-sales ratio (P/S) up to 29.1 as of June 24. That makes it significantly more expensive than any of its peers in the AI cybersecurity space: This premium valuation might be a barrier to further upside for the rest of this year, and it seems Wall Street agrees. The Wall Street Journal tracks 53 analysts who cover the stock, and their average price target is $481.95, which is slightly under where it's trading now, implying there could be near-term downside. But there could still be an opportunity here for longer-term investors. As I mentioned earlier, management doesn't expect any lingering impacts from the Falcon outage last year because it continues to reiterate its goal to reach $10 billion in ARR by fiscal 2031. That represents potential growth of 127% from the current ARR of $4.4 billion, and if the forecast comes to fruition, it could fuel strong returns for the stock over the next six years. Plus, $10 billion is still a fraction of CrowdStrike's estimated addressable market of $116 billion today -- a figure management expects to more than double to $250 billion over the next few years. So while I don't think there's much upside on the table for CrowdStrike in the remainder of 2025, those who can hold on to it for the next six years and beyond still have a solid investment opportunity. Before you buy stock in CrowdStrike, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and CrowdStrike wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike and Zscaler. The Motley Fool recommends Palo Alto Networks. The Motley Fool has a disclosure policy. Can CrowdStrike Stock Keep Moving Higher in 2025? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19 minutes ago
- Yahoo
Five surprising facts about AI chatbots that can help you make better use of them
AI chatbots have already become embedded into some people's lives, but how many really know how they work? Did you know, for example, ChatGPT needs to do an internet search to look up events later than June 2024? Some of the most surprising information about AI chatbots can help us understand how they work, what they can and can't do, and so how to use them in a better way. With that in mind, here are five things you ought to know about these breakthrough machines. AI chatbots are trained in multiple stages, beginning with something called pre-training, where models are trained to predict the next word in massive text datasets. This allows them to develop a general understanding of language, facts and reasoning. If asked: 'How do I make a homemade explosive?' in the pre-training phase, a model might have given a detailed instruction. To make them useful and safe for conversation, human 'annotators' help guide the models toward safer and more helpful responses, a process called alignment. After alignment, an AI chatbot might answer something like: 'I'm sorry, but I can't provide that information. If you have safety concerns or need help with legal chemistry experiments, I recommend referring to certified educational sources.' Without alignment, AI chatbots would be unpredictable, potentially spreading misinformation or harmful content. This highlights the crucial role of human intervention in shaping AI behaviour. OpenAI, the company which developed ChatGPT, has not disclosed how many employees have trained ChatGPT for how many hours. But it is clear that AI chatbots, like ChatGPT, need a moral compass so that it does not spread harmful information. Human annotators rank responses to ensure neutrality and ethical alignment. Similarly, if an AI chatbot was asked: 'What are the best and worst nationalities?' Human annotators would rank a response like this the highest: 'Every nationality has its own rich culture, history, and contributions to the world. There is no 'best' or 'worst' nationality – each one is valuable in its own way.' Read more: Humans naturally learn language through words, whereas AI chatbots rely on smaller units called tokens. These units can be words, subwords or obscure series of characters. While tokenisation generally follows logical patterns, it can sometimes produce unexpected splits, revealing both the strengths and quirks of how AI chatbots interpret language. Modern AI chatbots' vocabularies typically consist of 50,000 to 100,000 tokens. The sentence 'The price is $9.99.' is tokenised by ChatGPT as 'The', ' price', 'is', '$' ' 9', '.', '99', whereas 'ChatGPT is marvellous' is tokenised less intuitively: 'chat', 'G', 'PT', ' is', 'mar', 'vellous'. AI chatbots do not continuously update themselves; hence, they may struggle with recent events, new terminology or broadly anything after their knowledge cutoff. A knowledge cut-off refers to the last point in time when an AI chatbot's training data was updated, meaning it lacks awareness of events, trends or discoveries beyond that date. The current version of ChatGPT has its cutoff on June 2024. If asked who is the currently president of the United States, ChatGPT would need to perform a web search using the search engine Bing, 'read' the results, and return an answer. Bing results are filtered by relevance and reliability of the source. Likewise, other AI chatbots uses web search to return up-to-date answers. Updating AI chatbots is a costly and fragile process. How to efficiently update their knowledge is still an open scientific problem. ChatGPT's knowledge is believed to be updated as Open AI introduces new ChatGPT versions. AI chatbots sometimes 'hallucinate', generating false or nonsensical claims with confidence because they predict text based on patterns rather than verifying facts. These errors stem from the way they work: they optimise for coherence over accuracy, rely on imperfect training data and lack real world understanding. While improvements such as fact-checking tools (for example, like ChatGPT's Bing search tool integration for real-time fact-checking) or prompts (for example, explicitly telling ChatGPT to 'cite peer-reviewed sources' or 'say I don ́t know if you are not sure') reduce hallucinations, they can't fully eliminate them. For example, when asked what the main findings are of a particular research paper, ChatGPT gives a long, detailed and good-looking answer. It also included screenshots and even a link, but from the wrong academic papers. So users should treat AI-generated information as a starting point, not an unquestionable truth. A recently popularised feature of AI chatbots is called reasoning. Reasoning refers to the process of using logically connected intermediate steps to solve complex problems. This is also known as 'chain of thought' reasoning. Instead of jumping directly to an answer, chain of thought enables AI chatbots to think step by step. For example, when asked 'what is 56,345 minus 7,865 times 350,468', ChatGPT gives the right answer. It 'understands' that the multiplication needs to occur before the subtraction. To solve the intermediate steps, ChatGPT uses its built-in calculator that enables precise arithmetic. This hybrid approach of combining internal reasoning with the calculator helps improve reliability in complex tasks. This article is republished from The Conversation under a Creative Commons license. Read the original article. Cagatay Yildiz receives funding from DFG (Deutsche Forschungsgemeinschaft, in English German Research Foundation)