Post

VaporDemand for VaporWare how surprising

Does that mean all those data centers will be able to store extra emails so Google stops telling me that I’m in critical risk of losing important data?

Me, waiting for the GPU liquidation sales.

Hyperscalers have sold the media and investors on the idea that $990bn in capex would create diverse AI demand. Instead they've destroyed their free cash flow to prop up unsustainable AI labs who can only pay when hyperscalers hand them the money to do so. www.wheresyoured.at/the-ai-demand-bubble/

Wait so Microsoft is paying for OpenAI to function day-to-day AND pays for the hardware and buildings for their fancy algorithm to work on...and are calling that parasitic relationship "revenue." Good thing (for them) shareholders are stupid and have very little power anymore, I guess.

It’s a good thing those companies aren’t cutting or scaling back ways to diversify their income like closing in-house game studios or…oh, well that’s not good.

Reading this, I realized something that infuriates me. The hole in the system is OpenAI/Anthropic, but they're free to lose historic sums, as long as they don't die. Which they won't, as long as hyperscalers (& VCs) keep topping them up. Which they can do, because every up-round is booked as profit!

Ed - this is really thought provoking. It leaves me wondering how all of these ends? The revenues just go to infinity or does the house of cards collapse? I’m not sure I see a lot of middle ground.

Hopefully someone is adding this to the script for “The Big Short 2“

lol

Ed should*

Nice I missed that, now I am subscribed.

i am not on substack

Maybe they should ask their own AI what to do!

bsky.app/profile/jess...

"Lifespan Discrepancies Economic Lifespan: 1 to 3 years due to fast-moving hardware updates and intense workloads.Accounting Depreciation: 5 to 6 years, which is the timeline major tech companies use on paper to spread out the cost of massive infrastructure investments."

Big Tech today:

For that the hardware cost needs to go back to normal prices but yes, when it comes back, we can all run decent local open weights models.

Hey @edzitron.com , how do smart people like Hank Green get hypnotized by AI hype?

Die!!! And, F-Trump

Not at least before 2028. It will most likely continue to increase until then.