The AI Bubble burst

[Xzi]

It's just barely starting to burst, but this was inevitable. AI is worth only a little more than the cost of hardware needed to host it, and the wealthy bet that its value would rival that of the entire world economy. Idiocy to the nth degree.

 

[Bladexdsl]

good fucking riddance when it finally does

 

[Nakamichi]

good fucking riddance when it finally does

those news sites seem to thing its starting.
... some south korean investors probably would probably agree?
but im hardly an expert

 

[smf]

I think it's less of a bubble bursting thing and more of a when data centers will actually be finished and the corperates will no longer need the extra stock. Two very confusing different things people get mixed up. When corperations don't need more of something prices drop so the general public can afford it.

The GPU's need replacing every three years, the demand doesn't end until AI dies. If it never does, then you'll likely not have a job or have access to technology soon.

 

[Technicmaster0]

The GPU's need replacing every three years, the demand doesn't end until AI dies. If it never does, then you'll likely not have a job or have access to technology soon.

If there is enough demand, production can always be ramped up. But ofc that can take a while with technology like that and it's also a risk for the companies, so they might be hesitant about it.

 

[subcon959]

If there is enough demand, production can always be ramped up. But ofc that can take a while with technology like that and it's also a risk for the companies, so they might be hesitant about it.

They deliberately haven't ramped up production even though it would've been useful years ago. Why bother when companies are basically writing blank cheques for the capacity for the foreseeable future with no downside. Basic collusion and cartel-like behaviour they've been enjoying for decades with the occasional slap on the wrist.

 

[Technicmaster0]

Why bother when companies are basically writing blank cheques for the capacity for the foreseeable future with no downside.

Because they could sell more and make even more money? The issue with chip production is that everything is super expensive. Companies must be super sure that the investment is worth it to do it.