Building on AI: How Much Risk Can You Handle… | The AI Briefing
The AI Briefing Episode 13 November 19, 2025 · 2:58

Building on AI: How Much Risk Can You Handle?

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What you'll learn

  • The Cloudflare outage is the trigger for the conversation: entire businesses grinding to a halt because one piece of centralised infrastructure blipped. AI vendor risk sits in exactly the same category.

  • The deployment choices are not binary. OpenAI direct, Azure AI playground, self-hosted models, and mixed strategies all trade cost, control and risk differently. The right pick depends on how deep AI sits in your revenue path.

  • Risk appetite should differ by stage. A startup can rationally wrap its whole strategy around an AI API; an established business betting core operations on the same API is a different conversation entirely.

  • The bubble talk is a distraction. The real question is 'if this vendor is down or gone in 18 months, does my product survive?' Answer that before you commit.

By the end of this episode you should be able to place your business on the risk-appetite spectrum for AI vendor dependency and name the one deployment option that fits.

In this episode

  1. The Cloudflare outage and what it means for AI infrastructure
  2. Deployment options: OpenAI direct, Azure playground, self-hosted
  3. Risk appetite for startups vs. established businesses
  4. Making AI a core part of your business without single points of failure

In this brief on-the-go episode, Tom discusses the risks of building businesses on centralized AI infrastructure. Sparked by Cloudflare's recent major outage, he explores what happens when AI vendors go down and how companies should think about their risk appetite when depending on services like OpenAI, Anthropic, or other AI providers. From wrapping entire business strategies around AI APIs to considering self-hosted alternatives, Tom breaks down the strategic considerations for both startups and established businesses looking to integrate AI into their core operations.

Key Topics

  • The Cloudflare outage and its implications for internet infrastructure

  • Risk management when building on third-party AI vendors

  • Different deployment options: OpenAI direct, Azure AI playground, or self-hosted models

  • How risk appetite should differ between startups and established businesses

  • Strategic considerations for making AI a core part of your business

  • The AI bubble discussion and vendor dependency concerns

Need help navigating AI infrastructure decisions for your business? Get in touch at https://www.concepttocloud.com

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Transcript

Hi, folks. Just a quick one today as I'm very much on the move. But welcome to the AI Briefing Podcast. And I was having a think on the flight over of, like, the issues and the pitfalls that can come with the way that modern internet architecture is architected. Um, for anyone who didn't see the news today, yesterday now, Cloudflare suffered a large outage, um, caused by some suspicious or erroneous traffic going through their system that took out a large portion of the internet.

And of course, this makes me think from an AI perspective, um, when you've got such a reliance, just as so many customers have on cloud infrastructure, like many of the AI organizations, is what's the backup plan when it doesn't work? When all the systems go down and you've built a product or you have a large reliance on a specific AI vendor to provide either, you know, GPT support or API support or image generation support, what happens? Like, what's the risk and what's your appetite for risk when it comes to working in that space? Google, uh, the boss guy from Google today came out and was similarly talking about the AI bubble and the potential for it bursting. Like, as you build these companies that wrap so many AI services, you also have to weigh up your risk appetite for what is acceptable risk when it comes to deploying your entire business strategy around such a hot commodity.

Now, for a lot of people, it's fine. If you're, like, a super startup and basically you want to create something that's in the AI space, then sure, go ahead. Wrap your business strategy around OpenAI or Anthropic or whoever's model you want to use. But if you're a more stable business long-term, been around for a while, and you're considering dabbling in AI, if you-- also to make it a core part of your business, you have to then weigh up the risk and the way that you want to be able to deal with that. Do you use OpenAI directly?

Do you use the models hosted in Microsoft's, um, AI Playground? Do you self-host a model that, uh, you can get from one of the open source ones? It depends on what features and functionality you require as to what you can do when it comes to actually deploying that stuff. So anyway, just a quick one that was a bit more food, food for thought than anything, uh, groundbreaking. But let me know what you think in the comments, and I will see you again tomorrow.

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