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IBM CEO says there is 'no way' spending trillions on AI data centers will pay off at today's infrastructure costs
(www.businessinsider.com)
No shit
this post was submitted on 03 Dec 2025
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So IBM (PCs are just a passing fad) has a future prediction? Not sure how much weight I should give this.
Nobody wants it to pay off. They want to be the last one standing which will pay off.
Will it, though?
I hope not but it probably will.
The last one standing will probably get a bailout by corporate Democrats and every Republican.
The last one standing will be "too big to fail" because currently the only reason that the global economy is not in a recession is due to AI spending.
Big if, because you expect a US company to win.
All companies are US companies as long as they ~~brive~~ make campaign contributions. Business has no borders.
Worked for the US after WWII.
Well... for a while at least.
The people, of course
IBM is in the business of consulting. They don’t want their business model getting usurped. Imagine if everyone had access to a bot that could do IBMs job.
I don’t like AI, but this is one reason I can see him saying that.
Sure but they're in the business of consulting on how to build out that AI platform and the business of providing an AI platform.
We know. Ffs.
It's simple, you just use the resources people need and charge them more to keep everything affordable per quarter. Run out there's plenty of those national parks they've been hoarding from us.
One day we'll read some of these comments and laugh at how shortsighted they were.
Of course we'll probably have to read them on a manuscript or smeared on a wall with feces because all the world's resources will be used by the huge datacenters that power our AI overlords
So then we're going to drive down the cost of building & developing infrastructure, right?
Based on the type of AI models IBM has published, they are betting on smaller, specialized models that can run locally or cheaper in a data center. Their strategy seems to be similar to that of thr Chinese, just for different reasons.
For the same reasons. The old rules still work, most of the gold in tech industry is in tall RnD later paid off by scaling indefinitely. Things different from that are either intentionally promoted to inflate a bubble, or popular as a result of wishful thinking where that industry will change in favor of the same curve as with oil and gas. The latter just won't happen.
Data is analogous to oil and gas here. But more like urine in ancient Rome than like something dug up from the ground.
But there's still interest in making some protections and barriers to collection of said data, because otherwise those collecting it are interested to immediately use it for only their own good and not even of other fish in the pond.