AI is still in the INFANTILE stage isn’t it? You tell me. There is something to be said about being cautious but then there’s something to be said for being pedal to the metal. I say let the chips fall where they may. The big investors may be totally uncautious so let them take those chances that communism will never allow. I tell you...
It’s gonna be awesome!
Interesting choice of words. The AI industry has vacuumed up the GPU, CPU, RAM and storage chips to build out their vision. Much of that inventory may be bordering on obsolete by the time the physical data centers, servers and networks that will use the chips reach a point of providing revenue generating service. Corporate America replaces servers and end user devices about every 3 years as operating systems evolve and need better hardware. Recall the obsolescence of hardware that could no longer run Windows 11. I suspect AI is going to run into the very same programmed obsolescence.
Eventually, it’ll surpass human brainpower, at least in many ways. The only question is what’s “eventually.” Could be in 50 years. Could be in 5 years. No one knows. A lot of people are guessing, but no one can say who’s right.
The AI fallout is going to make the telecom bust look like amateur hour.
According to Amazon, they have have $5billion worth of AI racks just sitting in warehouses because there isn’t enough power for them. Plus they are on the hook for $3 billion/month for more racks.
At some point, Amazon will need to stop buying, which Nvidia won’t need to produce as many, but that certainly won’t look good in their quarterly reports.
If Amazon can’t deploy all the racks they own, could that also hold true for Microsoft, Meta, or any of the other companies? Oracle is taking a bit of a beating. It’s a very circular economy unfortunately.
I’m of the opinion that the Anthropic IPO is being done because they know there are rough roads ahead and investors want to cash out and collect what they can, hoping that hype will carry the day.