This is a most excellent place for technology news and articles.
Makes sense. It takes years to complete construction projects and budgets always overrun. AI is a fad for most companies trying to get into it.
Think about the dotcom bubble. We went from having all of these businesses that shot to the moon for valuation... and then it collapsed. Feels exactly the same. A few will survive to become metas and googles because it is not a worthless technology, but most of them are going to be worthless companies when investors decide it's time to run.
markets are now starting to punish tech companies that overextend on AI, a realisation has rapidly kicked in that Al is far from profitable.
Winter is coming
U.S. still depends on China, despite years of onshoring efforts.
Reminds me of that time when one president signed a bill to move chip production to the US then the next president raided the chip-making facility and arrested all those chip-making people for trying to show the locals how to make chips.
Would you mind elaborating a little more? I live under a rock but this seems interesting
The Hyundai engineers, technicians, and equipment installers were not teaching anyone how to make chips.
Thanks
one president signed a bill to move chip production to the US then the next president raided the chip-making facility and arrested all those chip-making people for trying to show the locals how to make chips
Chip making production has begun to migrate largely as a consequence of the Trump tariffs. The Biden plan to send Intel a few billion in kickbacks in exchange for a chip fab industry that wasn't the laughing stock of the planet only enriched shareholders and executives.
I'm not sure what you're referring to. Maybe Operation Low Voltage, which was a raid on a Hyundai battery plant in Georgia? I can't find anything about a raid on a chip fab plant.
In fairness to Trump leadership, a bunch of these workers were, in fact, overstayed on their visas. Although, as usual, Trump sent guys in with shotguns to do what a sternly worded letter would have just as easily accomplished.
But these are the two faces of Western Capital. The bailout and the beat down. Liberals throw money at the problem. Conservatives slap you around on the thinnest pretexts. Neither president seems to have benefited the US domestic consumer.
An absolute disgrace
Let the prices fall.
Let the prices hit the floor
Let the prices hit the floor
Let the prices hit the..
FLOOOOOOOOOOOOOOOOOR
Makes you wonder what they're going to do with all this hardware they're buying? I hope that they (the ultra rich) are the ones to hold the bag for once in their lives.
Just kidding, they'll probably get a bailout from our (US) corrupt government.
If I recall, the hardware isn't actually "bought".
Altman just signed super-not-binding pinky promises with Hynix & Samsung that he'd mop up all of their DRAM inventory.
And now that data center buildouts are getting shitcanned, we're seeing Micron stock tumble, because they threw it all away for that sweet, sweet AI payout.
Yeah the AI bubble is going to explode soon. I'm going to be super happy, but the economy will be fucked for everybody.
Not only that, they will get bailed out with borrowed tax monies.
Even with a bailout, I’ll take some admission of making a mistakes over the insanity we have today.
All that venture capital. Gone into rich people’s pockets.
It's debt stacked on debt. The money isn't real, just the consequences of decades of credit expansion.
Now we either deal with a cascading wave of defaults (a la '29, '73, '86, '08, and '23) or we rush in with state credit to bail out all the private lenders.
But there's very little real money in real pockets. At the end of the day, it's borrowing power that makes you a billionaire.
Couldn't happen to a nicer pack of jackals.
The venture capital is just piles of money in other rich peoples pockets. As I understand it, the AI bubble is funded by massive amounts of saudi oil money anyway.
Its kinda like the jokers cash bonfire, but its Sam Altman pleading for more of it while eagerly dousing it in gasoline.
Where do you think the venture capital is coming from?
Other rich people.
It's a planning thing. My company has sewed up power capacity contracts with the utility providers very early in the process. We have outstanding capacity contracts available for future build out commitments. It's the folks late to the party that are starting projects without a plan and then failing.
"Looks like RAM is back on the menu, boys!"
Wait so AI data centres can't be built because of the limited availability caused by other AI data centres.
Which would lock all the AI CEOs in a big room and throw away the key.
Please let this be the beginning of the bubble burst 🤞
Also, what do you mean data centers aren't all dark rooms lit exclusively by RGB lighting?!? I feel lied to...
It's the beginning of reality biting for sure.
I think the big one will be when companies like openAI and anthropic have to file audited books in order to IPO (which they both want to do).
The bubble is actively breaking. Next couple months are going to be awesome. Along with oil prices making people think about getting an EV.
oracle slashed 30k jobs recently, yea its definitely getting worst. They might try to move the datacenters to India, bangladesh, SE asia where theres less resistance against regulation.
To address shortages, companies are turning to global markets. As a result, Canada, Mexico, and South Korea became the biggest suppliers of high-power transformers for AI data centers to AI data centers.
God I wish democracy meant that we could vote on decisions like this
God I wish democracy meant that we could vote on decisions like this
You can! Only problem is that it's one vote per dollar instead of one vote per person.
It seems clear to me that cloud LLMs have the same scaling problems and demand concerns that cloud gaming did.
Oh well, maybe regular people will have to still run software locally after all. 🤷
I think theyre hoping this nonsense will empower cloud gaming woth things like DLSS5 which takes 2 5090s to run, or a cloud subscription.
Stupid fucks are clueless about what the narket actually wants..
