alt Hacker NewsI have been having this conversation more and more with friends. As a research topic, modern AI is a miracle, and I absolutely love learning about it. As an economic endeavor, it just feels insane. How many hospitals, roads, houses, machine shops, biomanufacturing facilities, parks, forests, laboratories, etc. could we build with the money we’re spending on pretraining models that we throw away next quarter?
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Not many. Money is not a perfect abstraction. The raw materials used to produce 100B worth of Nvidia chips will not yield you many hospitals. AI researcher with 100M singup bonus from Meta ain't gonna lay you much brick.
FWIW the models aren't thrown away. The weights are used to preinit the next foundation model training run. It helps to reuse weights rather than randomize them even if the model has a somewhat different architecture.
As for the rest, constraint on hospital capacity (at least in some countries, not sure about the USA) isn't money for capex, it's doctors unions that restrict training slots.
> How many hospitals, roads, houses, machine shops, biomanufacturing facilities, parks, forests, laboratories, etc. could we build
“We?”
This isn’t “our” money.
If you buy shares, you get a voice.
There is a certain logic to it though. If the scaling approaches DO get us to AGI, that's basically going to change everything, forever. And if you assume this is the case, then "our side" has to get there before our geopolitical adversaries do. Because in the long run the expected "hit" from a hostile nation developing AGI and using it to bully "our side" probably really dwarfs the "hit" we take from not developing the infrastructure you mentioned.
I have to admit I'm flip-flopping on the topic, back and forth from skeptic to scared enthusiast.
I just made a LLM recreate a decent approximation of the file system browser from the movie Hackers (similar to the SGI one from Jurassic park) in about 10 minutes. At work I've had it do useful features and bug fixes daily for a solid week.
Something happened around newyears 2026. The clients, the skills, the mcps, the tools and models reached some new level of usefulness. Or maybe I've been lucky for a week.
If it can do things like what I saw last week reliably, then every tool, widget, utility and library currently making money for a single dev or small team of devs is about to get eaten. Maybe even applications like jira, slack, or even salesforce or SAP can be made in-house by even small companies. "Make me a basic CRM".
Just a few months ago I found it mostly frustrating to use LLM's and I thought the whole thing was little more than a slight improvement over googling info for myself. But the past week has been mind-blowing.
Is it the beginning of the star trek ship computer? If so, it is as big as the smartphone, the internet, or even the invention of the microchip. And then the investments make sense in a way.
The problem might end up being that the value created by LLMs will have no customers when everyone is unemployed.