Imagine slashing your AI infrastructure costs by a staggering 82%. That's exactly what Alibaba Cloud claims to have achieved with its groundbreaking new pooling system. But here's where it gets controversial: can such dramatic savings be sustained in real-world scenarios, or is this just a lab-bound success story? Let's dive in.
Alibaba Group Holding has unveiled a revolutionary computing pooling solution, dubbed Aegaeon, that promises to drastically reduce the number of Nvidia GPUs required to power its artificial intelligence models. During a three-month beta test in Alibaba Cloud’s model marketplace, Aegaeon demonstrated an 82% reduction in the number of Nvidia H20 GPUs needed—from 1,192 down to just 213—to serve dozens of models with up to 72 billion parameters. These findings were presented this week at the 31st Symposium on Operating Systems Principles (SOSP) in Seoul, South Korea, in a research paper co-authored by Alibaba Cloud’s Chief Technology Officer, Zhou Jingren.
And this is the part most people miss: the researchers from Peking University and Alibaba Cloud highlight that Aegaeon is the first system to expose the exorbitant costs of running concurrent large language model (LLM) workloads. Cloud service providers like Alibaba Cloud and ByteDance’s Volcano Engine routinely handle thousands of AI models simultaneously, leading to inefficiencies. For instance, in Alibaba Cloud’s marketplace, 17.7% of GPUs were allocated to serve a mere 1.35% of requests, primarily because only a handful of models, such as Alibaba’s Qwen and DeepSeek, dominate inference tasks.
Aegaeon addresses this inefficiency by pooling GPU resources, allowing a single GPU to serve multiple models concurrently. This approach isn’t entirely new—researchers worldwide have explored GPU pooling to improve efficiency—but Aegaeon’s scale and impact are unprecedented. Here’s the controversial question: If this system is so effective, why hasn’t it been widely adopted already? Could there be hidden trade-offs in performance or scalability that Alibaba isn’t disclosing?
For beginners, think of GPU pooling like carpooling for AI models. Instead of each model having its own dedicated GPU (like everyone driving alone), multiple models share the same GPU (like sharing a ride), reducing costs and resource waste. However, just as carpooling can sometimes lead to delays, GPU pooling might introduce latency or compatibility issues—something Alibaba’s research doesn’t fully address.
What do you think? Is Aegaeon the future of AI infrastructure, or is it too good to be true? Share your thoughts in the comments—we’d love to hear your take on this potentially game-changing technology!