More and more mainstream analysts are identifying the coming AI crash, which is a good indication that it will happen soon.
So, what happens to all the data centers? They are already built but probably very expensive to maintain. Will many of them just be abandoned? Bought up by cloud computing companies? Scammers? Crypto miners? Can they be parted out and sold off piecemeal?
Will they be put to some productive use, or just become massive e-waste sites left to the locals to deal with?
AI isn’t going away, there may be some consolidation of providers and right sizing of costs but AI is here to stay. Too many big companies have invested too much for it to fail.
They said that about so many other things in the past
Like?
- fully CGI movies
- coal mines
- British Steel
- American Steel
- Enron
But we still have CGI movies, we still have coal mining companies, and we still have steel manufacturing companies. AI companies may fail, but the AI industry will continue, which was my point.
Aye, and there’s still slavery too.
But there’s far far far far far far far far far far less of it than before the “too big to fail” bubble burst.
And what’s left of it is niche and specialist, such as Prison.
Sure, let’s split hairs.
Avatar: Fire and Ash
That’s not full CGI? There’s live action in it.
As in everything in the movie being CGI
You willingly watched that movie? Wild
The operating costs of AI are prohibitively expensive even by the standards of US military budgets, and they are not the utility we were promised. Companies were told they could replace their entire workforce with AI and not only is that not true but now the subscription costs are going up.
It doesn’t matter how much consolidating you do the product still isn’t compelling and it’s still expensive as hell to operate.
Anthropic is expected to post a profit next quarter, it may prohibitively expensive to run but that doesn’t mean it can’t be profitable. But who knows, maybe they won’t.
I read somewhere that for every $1 they’re taking in in cash they’re spending $100 in operating costs. If they charge the amount of money they would need to charge in order to actually have net income they wouldn’t have any customers.
I’m not saying changes aren’t coming, if they can’t make a profit off it then they’ll need to adapt or die. So it will either get more expensive or more efficient, but I don’t believe the bubble will burst and there will suddenly be a fire sale on cheap data centres or their hardware.
The issue is really the use cases for AI have been way overblown. The AI companies sold it as an employee replacer. “It’ll cost pennies on the dollar, have better accuracy, and doesn’t need time off!” That’s not actually what it is though. Companies are coming to terms with AI being more expensive, less accurate, and dumb.
A piece of software I use at work is a great example and they barely oversold the capabilities. The software has a built in AI assistant which is pretty good at pointing you in the right direction to get the result you want. Then some genius realized it could also pull report data, so they removed some metric options from the reports and now I have to spend significantly longer prompting the AI to pull the metrics I want in a usable format. This is also far more computing power. So they decided to let you link other AI agents to their software so you could use another bigger model for “better results” (they don’t want to pay for all that AI themselves). Nobody bit, nobody linked to another AI because nobody wants to pay more. They’re quietly adding those metrics back to the reports now.
There’s no AI crash coming. It’s pure copium.
Why has the tech become affordable and useful all of a sudden?
It’s extremely useful and is affordable enough for people who can actually make use of it.
So all these companies that replace all their employees with AI and then immediately need the human’s back. They’re just doing it wrong are they?
I wouldn’t mind AI if it actually worked as advertised. If I could run a pure AI company from my home office that would be fabulous thing. The thing is it doesn’t work, you can’t do that.
Have you read the report about where they tried to get an AI to independently run a vending machine, it couldn’t even cope with that.
All this hardware is essentially worthless other than AI
They will just turn all the empty space inside into detention centers and keep all of us locked up.
If they’re already operational when that happens, likely sold off to cloud hyper scalers on the cheap. That or they’ll be turned into warehouses.
Nothing half done will just be abandoned and the land sold.
A boom in local AI as people buy the crazy expensive video cards for pennies on the dollar for home usage?
Those gpu’s are not useful as video cards.
I said for local AI, I didnt say for gaming.
Press X to doubt
Yeah, these cards will most likely be in pieces rather than reused by people.
It’s also just that local AI is not worth the time and energy unless you’re a prick with too much money and incoherent ideology
Incoherent ideology ?
There’s a few people who are like:
- AI bad, cause environmental, capitalism, and training data being based on spyware
- but if I run local AI, those magically all stop being true, because I think it hard enough
Ah, yeah, I’ve seen that.
There are also people who want to run locally for other reasons as well.
Privacy being a big one, but there are others.
I’m not sure what the ratios are though.
Wouldn’t that be an inconsistent ideology?
Same thing
I think that means a dictator with a speech impediment.
Most of them aren’t even built yet.
World’s
Biggest
LAN Party!Hopefully, for the CEOs and people who made them happen,
I’d argue that “burning the guillotine” can happen after it makes its comeback, but desperate times call for desperate measures.
Spirit Halloween gonna have some massive sales.
My doom scenario: They will become low security prisons/manufacturing factories.
Or Company Housing to go along with the Company Store where you will always be short 1 Company Buck to buy that half loaf of day old white bread…same thing, really.I wonder how big is the bubble. But few years of cut to military spending? Or public bailout. I bet Trump will make sure it won’t burst during his presidency.
Cheap hardware sales?
What do you mean cheap? Those are literally the most expensive racks ever.
Ever heard the term “fire sale”? They might end up having to sell way over the market demand, and therefore for low prices because some want at least a bit of their money back.
They are the most expensive racks also because of what it costs to have them in use, not only their price. Assuming you could get them for cheap, you can’t actually get a data center for cheap and all the needed utilities to run said data center.
Well, they usually run on 48V or 12V DC (which is no issue for me), and they attach to certain cooling systems, either liquid or air. Both can be rigged. Rack management systems? Can be adapted.
They will stop pretending they’re data centers and we will start calling them what they really are, surveillance centers
Socialize the losses.
