However, I don’t think these companies provision capacity for peak usage and let it idle during off peak. I think they provision it at something a bit above average, and aim at 100% utilization for the max number of hours in the day. When there is not enough capacity to meet demand they utilize various service degradation methods and/or load shedding.
Is this why I get anthropic/Claude emails every single day since I signed up for their status updates? I just assumed they were working hard with production bugs but in light of this comment, if you don't hit capacity constraints every day, you are wasting money?
However, I don’t think these companies provision capacity for peak usage and let it idle during off peak. I think they provision it at something a bit above average, and aim at 100% utilization for the max number of hours in the day. When there is not enough capacity to meet demand they utilize various service degradation methods and/or load shedding.