GHS Blog | Industry Insights

The Hidden Waste in AI and How CIOs Can Fix It

Written by GlassHouse Systems | Jun 2, 2025 5:12:29 PM

Artificial intelligence has become one of the most visible and well-funded initiatives in enterprise technology. CIOs are under increasing pressure to integrate AI into core business functions, from customer service and product recommendations to logistics and fraud detection. Boards want results. Executives want proof of return on investment. Data scientists want more resources. And the infrastructure team is asked to support all of it, often without clarity or coordination.

One of the least discussed but most critical obstacles to realizing value from AI is not talent or data. It is infrastructure waste. More specifically, it is the underutilization of GPU resources that serve as the computational backbone of most modern AI workloads.

In many enterprise environments, GPU utilization rates remain astonishingly low. Utilization hovering around twenty percent is common. This is not due to a lack of demand or poor hardware. It is due to the inability to effectively schedule, share, and migrate GPU workloads across a virtualized environment. The tools to fix this are here, and VMware Cloud Foundation is at the center of the solution.

Why GPUs Sit Idle

Unlike traditional CPU-based applications that are easily virtualized and distributed, GPU workloads tend to be isolated and bound to specific hardware. Most AI teams request dedicated servers with fixed GPU capacity to run training jobs or inference pipelines. Once provisioned, those servers often remain locked to specific teams or projects. They become single-tenant infrastructure in a multi-tenant enterprise.

This isolation results in significant waste. GPUs are expensive and power-hungry. When they are not running active jobs, they are consuming resources without delivering value. In environments where models are trained intermittently or scheduled in batches, idle time can consume more capacity than productive compute. This undercuts the cost efficiency of AI programs and strains capital budgets.

The problem is not the workload. The problem is the inability to treat GPU infrastructure as a flexible, shared, and orchestrated resource pool.

Virtualizing the AI Pipeline

VMware Cloud Foundation introduces virtualization capabilities that bring structure and flexibility to GPU-driven environments. Just as vSphere brought VM portability and resource pooling to CPU workloads, VCF now extends these principles to GPU compute.

One of the most important capabilities is GPU vMotion. With recent advancements, large language model workloads that are bound to GPU memory can now be live-migrated between hosts with minimal disruption. This opens the door to balancing GPU loads across clusters, reclaiming idle resources, and performing maintenance without halting inference or training jobs.

VCF also enables GPU sharing across virtual machines. Instead of locking an entire GPU to a single task or user, multiple virtual machines can schedule jobs on shared hardware. This dramatically increases utilization and ensures that the most expensive parts of the AI infrastructure are delivering proportional value to the organization.

This is not theoretical. These capabilities are in use today across enterprises that have embraced AI not as a side project but as a core competency.

A New Class of AI Use Cases

Retrieval Augmented Generation, or RAG, is one of the fastest growing patterns in enterprise AI. It combines the capabilities of pretrained language models with the specificity of internal data. Instead of training a model on proprietary content, organizations use a retrieval layer to pass relevant context into a model at runtime.

RAG is powerful because it allows enterprises to generate domain-specific insights without moving sensitive data into the public cloud or exposing it to uncontrolled environments. It is also resource intensive. It requires fast access to vector databases, reliable GPU inference, and low-latency orchestration between systems.

In a VCF environment, RAG can run within a private cloud, adjacent to proprietary data, with GPU capacity managed through a shared infrastructure model. This not only protects intellectual property but ensures performance consistency across the AI pipeline. VCF's architecture supports these workloads natively, reducing the time from pilot to production and maximizing the impact of AI investments.

Shifting the AI Conversation

CIOs are often asked how they plan to scale AI. The common answer is to invest in more compute. But the real question is not how much infrastructure you have. It is how well you are using it.

The difference between a successful AI program and a cost sink is not only in the algorithm. It is in the orchestration. The ability to schedule workloads intelligently, to migrate tasks without downtime, to share GPUs across teams, and to reclaim unused capacity is what transforms AI from an experiment into a platform capability.

VMware Cloud Foundation provides that capability. It allows AI infrastructure to be treated with the same rigor and efficiency as traditional enterprise workloads. It integrates seamlessly with the broader IT landscape, supports secure operations, and delivers the governance needed for auditability and compliance.

Key Takeaway

You are not short on GPUs. You are short on orchestration. The next step in AI maturity is not just about model development. It is about infrastructure strategy. VMware Cloud Foundation provides the tools to virtualize, automate, and optimize GPU environments so that AI delivers what it promises, not just what it costs.