FinOps Monthly AI Edition #4.0
Your AI-Curated FinOps Briefing
#4.0 May 2025
FinOps Monthly AI Edition delivers the essential FinOps news, trends, and best practices - intelligently curated by AI to save you time. Each month, get a concise briefing on key industry developments, emerging technologies, and strategic insights into FinOps and AI.
Industry Updates
NVIDIA Emphasizes AI Cost Management Critical Importance: "Establishing proper FinOps for AI has become critical for business success," stated NVIDIA as they joined the FinOps Foundation as a Premier Member. This reflects the growing recognition that AI cost management has transitioned from experimental to strategic priority. J.R. Storment, Executive Director of the FinOps Foundation, noted these companies are "representative of the evolution of FinOps best practices into broader areas of technology spend."
Source: FinOps Foundation (May 21, 2025) - https://www.prnewswire.com/news-releases/finops-foundation-launches-2025-finops-framework-with-scopes-for-cloud-and-adds-new-premier-members-reflecting-the-expanded-practice-302461050.html
Open Data Cloud Architecture Drives AI Innovation: CIO.com discusses the strategic imperative for enterprises to manage their data layer effectively to support AI breakthroughs. The article highlights the pivot towards AI-powered open lakehouse architectures, unifying structured and unstructured data to eliminate silos and support real-time access for BI and advanced AI/ML workflows.
Source: CIO.com (May 29, 2025) - https://www.cio.com/article/3998131/beyond-the-lakehouse-architecting-the-open-interoperable-data-cloud-for-ai.html
FinOps Foundation Updates
Framework 2025 Premier Member Expansion: The FinOps Foundation announced that American Express, NVIDIA, AMD, ServiceNow and Snowflake joined as new Premier Members in May 2025, coinciding with the launch of Framework 2025. The 2025 revisions include the addition of Scopes as a core element, formally expanding FinOps beyond public cloud to cover broader "technology spend" including data centers, SaaS applications, and emerging compute-heavy workloads like GenAI.
Source: FinOps Foundation (May 21, 2025) - https://www.morningstar.com/news/pr-newswire/20250521dc92592/finops-foundation-launches-2025-finops-framework-with-scopes-for-cloud-and-adds-new-premier-members-reflecting-the-expanded-practice
FinOps X 2025 Highlights Expanding Scopes and Sustainability: Flexera highlights key themes for the upcoming FinOps X 2025 conference, focusing on the FinOps Foundation's updated Framework which now includes "Scopes." This concept details how FinOps practices can extend beyond cloud infrastructure to other technology spending, emphasizing collaboration between FinOps, ITAM, and DevOps teams.
Source: Flexera Blog (May 29, 2025) - https://www.flexera.com/blog/finops/whats-the-buzz-at-finops-x-expanding-scopes-and-cloud-sustainability/
Technology Provider Updates
Flexera Announces Major GreenOps Partnership with GreenPixie: Flexera announced an OEM partnership with GreenPixie, a cloud sustainability data company, to integrate cloud sustainability data (GreenOps) into Flexera One's Cloud Cost Optimization solution. According to Flexera's 2025 State of the Cloud report, over half (57%) of respondents indicated they either have, or plan to have, a defined sustainability initiative that includes cloud carbon footprint tracking within twelve months. The partnership provides Flexera customers with both cost and cloud-based emissions data in a single interface.
Source: Flexera/Globe Newswire (May 29, 2025) - https://www.globenewswire.com/news-release/2025/05/29/3090386/0/en/Flexera-bolsters-FinOps-offering-with-Spot-Eco-and-Ocean-and-signs-GreenOps-partnership-with-Greenpixie.html
nOps Launches Comprehensive AI Cost Optimization Suite: nOps rolled out multiple AI-focused enhancements including Quality Score in AI Cost Recommendations based on the industry-standard MMLU benchmark, support for Bedrock Claude models, and Gemini to AWS Bedrock recommendations that can save up to 50% while maintaining performance. Additional features include Speed and Latency scores for LLM provider comparisons and a new Compute Copilot Summary Page for unified view of EKS, ASG, and commitment savings.
Source: nOps Blog (May 2025) - https://www.nops.io/blog/introducing-quality-score-in-ai-cost-recommendations/
Cast AI Introduces LLM Workload Cost Optimization: Cast AI recently launched support for optimizing large language model (LLM) workloads, specifically designed to balance performance with compute cost in GenAI pipelines. The platform's cost optimization engine automatically scales clusters through rightsizing, bin packing, and strategic Spot instance utilization, providing real-time visibility into AI workload costs.
Source: nOps (May 2025) - https://www.nops.io/blog/cloud-cost-management-software-tools/
Compare365.ai Enters FinOps Space with Microsoft 365 Licensing Optimization: Compare365.ai launches in open-beta, as a specialized FinOps tool addressing the complex challenge of optimizing Microsoft 365 licensing costs through intelligent feature comparison and business outcome alignment. The platform tackles critical gaps, helping organizations understand which Microsoft 365 features they actually need versus what they're paying for across Microsoft 365 suites. For FinOps practitioners managing Microsoft 365 costs (often 20-40% of SaaS spend), the platform provides detailed licensing intelligence to right-size subscriptions and identify feature overlaps, positioning itself in the growing "SaaS FinOps" category.
Source: Tony Mackelworth: https://compare365.ai
FinOps Venture Capital
Cast AI Closes $108 Million Series C to Pioneer Application Performance Automation: Cast AI, the Miami-based Kubernetes automation platform, raised $108 million in an oversubscribed Series C round led by G2 Venture Partners and SoftBank Vision Fund 2, achieving an $850 million valuation. The funding positions Cast AI as a near-unicorn in the cloud cost optimization space, with the company pioneering "Application Performance Automation" to automatically optimize cloud workloads and reduce costs by up to 50% while improving performance for AI and Kubernetes environments.
Source: TechCrunch (April 30, 2025) - https://techcrunch.com/2025/04/30/cast-ai-raises-108m-to-get-the-max-out-of-ai-kubernetes-and-other-workloads/
Cloud Provider Updates
Microsoft Copilot in Azure Achieves General Availability for Cost Management: Microsoft announced the general availability of Copilot in Azure for cost management in April 2025, enabling users to ask natural language questions about their costs and receive instant, detailed insights. The AI-powered tool eliminates the need to manually navigate complex dashboards, providing personalized recommendations for right-sizing resources, identifying underutilized services, and suggesting cost optimization best practices through tailored prompts and "nudges" on the overview page.
Source: Microsoft Azure Blog (April 2025) - https://azure.microsoft.com/en-us/blog/microsoft-cost-management-updates-april-2025/
Azure OpenAI Fine-Tuning Billing Transitions to Token-Based Model: Microsoft updated Azure OpenAI fine-tuning billing to be based on the number of tokens in training files rather than total elapsed training time, resulting in significant cost reductions for some training runs. This change makes estimating fine-tuning costs much easier and more predictable, allowing organizations to better budget for AI model customization while potentially achieving substantial savings on training workloads.
Source: Microsoft Learn (April 2025) - https://learn.microsoft.com/en-us/azure/ai-services/openai/whats-new
AWS Introduces Intelligent Prompt Routing for Bedrock: AWS announced Intelligent Prompt Routing in Amazon Bedrock, which can reduce costs by up to 30% without compromising accuracy. The feature routes requests between models like Meta Llama 3.3 70B and 3.1B, and Nova Pro and Nova Lite, automatically selecting the most cost-effective model for each request. AWS also launched Batch mode for 50% lower pricing compared to on-demand inference.
Source: AWS Bedrock Pricing (April 23, 2025) - https://aws.amazon.com/bedrock/pricing/
AWS Enhances Budgeting and European Payment Options: AWS announced new cost metrics and filtering features within AWS Budgets on April 29th, helping users track budget categories such as net amortized costs after discounts. European customers gained access to Advance Pay functionality, allowing automated future payments where funds are pre-loaded into accounts for later invoice payments.
Source: CloudZero (April 2025) - https://www.cloudzero.com/blog/cloud-cost-news-april-2025/
Amazon S3 Express One Zone Delivers Massive Price Reductions Up to 85%: AWS announced substantial price reductions for Amazon S3 Express One Zone effective April 10, 2025, including 31% reduction in storage costs, 55% reduction in PUT request prices, and 85% reduction in GET request prices. Additionally, per-GB data upload and retrieval charges were reduced by 60% and now apply to all bytes transferred, making high-performance storage significantly more accessible for AI/ML training and analytics workloads.
Source: AWS News Blog (April 17, 2025) - https://aws.amazon.com/blogs/aws/up-to-85-price-reductions-for-amazon-s3-express-one-zone/
Amazon Bedrock Custom Model Import Introduces Real-Time Cost Transparency: AWS launched real-time cost transparency for Amazon Bedrock Custom Model Import, enabling users to view minimum compute resources (custom model units) required before model invocation through both console and APIs. Amazon CloudWatch metrics provide real-time visibility into total compute units used, enabling better cost control through near-instant visibility as models scale to handle increased traffic.
Source: AWS Weekly Roundup (March 31, 2025) - https://aws.amazon.com/blogs/aws/aws-weekly-roundup-amazon-bedrock-amazon-quicksight-aws-amplify-and-more-march-31-2025/
Google Cloud Launches Vertex AI Model Optimizer for Cost-Performance Balance: Google Cloud launched Vertex AI Model Optimizer, which provides a single meta-endpoint for Gemini model requests that automatically selects the most cost-effective model (Flash, Pro, or specific versions) based on configurable settings for cost, quality, or balance. This dynamic pricing approach optimizes both performance and cost by routing queries to the best-fit model for each task, eliminating the need for manual model selection and reducing complexity for enterprise customers.
Source: Google Cloud Vertex AI Pricing (May 2025) - https://cloud.google.com/vertex-ai/generative-ai/pricing
FinOps for AI
nOps Introduces Advanced LLM Cost Framework: nOps launched Quality Score in AI Model Provider Recommendations, allowing GenAI teams to evaluate switching LLMs based on cost, quality, output speed (tokens per second), and time to first token. The platform provides side-by-side guidance for switching from services like Gemini (Vertex AI) to Amazon Bedrock models, often reducing costs by 50% while maintaining similar performance through industry-standard MMLU benchmarking.
Source: nOps Blog (May 29, 2025) - https://www.nops.io/blog/introducing-speed-and-latency-score-in-ai-cost-recommendations/
Industry Recognition of AI Cost Management Criticality: NVIDIA's joining the FinOps Foundation as a Premier Member with the statement that "establishing proper FinOps for AI has become critical for business success" marks a significant industry acknowledgment. This reflects the maturation of AI cost management from experimental practice to strategic business imperative, driven by the substantial compute and infrastructure investments required for AI workloads.
Source: FinOps Foundation (May 21, 2025) - https://www.prnewswire.com/news-releases/finops-foundation-launches-2025-finops-framework-with-scopes-for-cloud-and-adds-new-premier-members-reflecting-the-expanded-practice-302461050.html
AWS Advances Agentic AI Applications: AWS detailed building agentic RAG applications using LlamaIndex and Mistral Large 2 on Amazon Bedrock, showcasing multi-agent collaboration for investment research. These sophisticated architectures introduce new layers of cost complexity that require advanced FinOps approaches for optimization, representing the next evolution in AI cost management.
Source: AWS AI Blog (May 29, 2025) - https://aws.amazon.com/blogs/machine-learning/create-an-agentic-rag-application-for-advanced-knowledge-discovery-with-llamaindex-and-mistral-in-amazon-bedrock/
Cloud Sustainability Becomes FinOps Priority: The Flexera-GreenPixie partnership represents a significant development in integrating sustainability metrics with cost optimization. With 57% of organizations planning cloud carbon footprint tracking within twelve months, FinOps teams are positioned to lead efforts that reduce both unnecessary spend and environmental impact through unified visibility into cost and emissions data.
Source: Flexera/Globe Newswire (May 29, 2025) - https://www.globenewswire.com/news-release/2025/05/29/3090386/0/en/Flexera-bolsters-FinOps-offering-with-Spot-Eco-and-Ocean-and-signs-GreenOps-partnership-with-Greenpixie.html
Conclusion
May 2025 represents a watershed moment for FinOps, characterized by the convergence of cost optimization, AI innovation, and sustainability initiatives. The industry has evolved beyond simple cloud cost management to embrace comprehensive technology spend governance that includes environmental impact alongside financial optimization.
The Flexera-GreenPixie partnership exemplifies this transformation, integrating cloud sustainability data (GreenOps) directly into cost optimization workflows. With 57% of organizations planning cloud carbon footprint tracking within twelve months, sustainability has emerged as a strategic FinOps priority rather than a compliance afterthought.
AI cost optimization has reached unprecedented sophistication, with nOps' comprehensive AI suite including Quality Score recommendations, AWS's Intelligent Prompt Routing delivering 30% cost reductions, and Google Cloud's Vertex AI Model Optimizer providing dynamic model selection. The evolution from simple cost tracking to intelligent, performance-aware optimization reflects the maturation of AI FinOps practices across all major cloud providers.
The FinOps Foundation's Framework 2025 with new Premier Members including NVIDIA, AMD, American Express, ServiceNow, and Snowflake signals AI's transition from experimental to mission-critical. NVIDIA's statement that "establishing proper FinOps for AI has become critical for business success" crystallizes what organizations worldwide are experiencing as AI workloads scale.
Microsoft's introduction of Copilot in Azure for cost management and transition to token-based billing for AI services demonstrates how cloud providers are embedding intelligence directly into cost optimization tools. Combined with AWS's advancement in agentic AI applications and multi-agent systems, these developments introduce unprecedented complexity in cost management, requiring sophisticated FinOps approaches that move beyond traditional resource optimization.
The venture capital landscape, highlighted by Cast AI's $108 million Series C round achieving near-unicorn status, indicates strong investor confidence in AI-focused cost optimization solutions. The funding from investors that previously backed OpenAI and Crusoe Energy demonstrates the convergence of AI infrastructure and cost optimization as a unified investment thesis.
Looking ahead, the integration of cost optimization, performance management, and sustainability metrics will define the next phase of FinOps evolution. Organizations implementing unified approaches to financial and environmental governance, powered by AI-driven automation and intelligent workload management, will gain significant competitive advantages as stakeholders increasingly demand transparency across both cost and carbon dimensions.
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#FinOps #CloudCost #AI #ML #CloudComputing #CostOptimization #AWS #Azure #GCP #ArtificialIntelligence #MachineLearning #CloudFinancialManagement #AIOps #LLM #SLM #AgenticAI #DataQuality #PlatformEngineering #Kubernetes #Cloudflare #CloudZero #nOps #Anodot #Densify #UsageAI #Archera #OpenOps #CloudBolt #StormForge #TechNews #FinOpsFoundation #ITModernization #CloudEconomics #FinOpsFramework #Cloud+ #SaaSManagement #AIOptimization #Codestone #TonyMackelworth
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About Tony Mackelworth
Tony Mackelworth has a proven track record in service leadership, product management and consulting. He has built and scaled global service portfolios in Microsoft consulting and FinOps, driving innovation, efficiency, and tangible results for global organizations.
With extensive experience delivering consulting services and leading practices, Tony combines strategic vision with hands-on expertise to help organizations maximize value from their Microsoft investments.
This website serves as a resource for the licensing community and a platform to share insights, empowering businesses to navigate FinOps, AI business transformation and cloud commercial models with confidence.
He is the Head of Solutions at Codestone Group.
Learn more about his work, side projects, and insights at Softspend.
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