Turns out a business plan consisting of »build a trillion dollars of server farms now, figure out who pays later« gets slightly less charming once the lenders ask for actual numbers. The AI industry wanted to disrupt every profession except the ancient art of checking whether the math works.
Isn’t this also how the dot-com bubble sort of happened?
This one has everyone’s retirement money tied into it.
All of these companies are not publicly traded. The “big ones” that build the data centers will lose a lot of value but will continue to exist.
The LLM companies deserve to & should go under.
As someone on the inside, I can assure you that the buyers put down money up front for a specified product and delivery date. There is no speculation involved. They line up to give us money. Unless Microsoft et al. goes bankrupt, we keep building.
It’s not an issue of prediction, or prophesy, it’s that all the available information right now looks like a classic bubble. could it find profitably? idk. is it profitable? No. is there billions or trillions in debt changing hands too fast for anyone to keep track of? yes. is someone selling somke? most likely these are the situations in which con artists thrive. probably not everyone is intending to sell smoke. but not all of this is going to work out, some may come out on top, but some will fall, and that will be a bubble.
Agreed.
Going a step further, the builders that build with environmental and community concerns first are more likely to endure. My company does exactly that.
FTA:
Drawing on data from regulatory intelligence outfit RegLayer, the FT reports that 47 large data center projects have already fallen through this year. Analysts at the equity research firm Bernstein only believe that about 35 percent of planned facilities are feasible.
Would you dispute these claims, based on your experience?
Not at all. Most builders are clueless. They think that because they have money, they can solve any problems.
Edit: Adding that site selection is HARD. Every developer with a spare farm plot wants in on the action. Most are completely inappropriate.
One thing I noticed while voting in the mid terms is how being anti data center is fairly bi-partisan even for maga dick bags.
Its NIMBY meets ethics. Pure coincidence.
The, we’re going to spend 10 trillion dollars on new data centers and they will use all the water and power messaging for stock pumping while people see costs increasing and rising water and power bills was a pretty direct and understandable message. Remarkably fast turnaround though ,it shows how most concepts are ossified while this was genuinely new and people were willing to change their minds on it.
It is almost as if we have common interests if we got past the “my team!” crap.
Star trek baby!
If only these data centers held the information that would have told them they were being the asshole.
Might get back into paintball
FUCK AI data centers.
American taxpayers will foot the bill for the bailout. And AI will know if you’re unhappy about it.
Uhh, they never were. Politicians were creaming over them because they’re basically funneling taxpayer money back to campaigns.
Good.
edit: hit wrong reply button
