alt Hacker NewsBe careful if you expect a dot com fallout - that was retail investor driven and took a long time to unwind as people sat through painful drops. Ai is much more of a private investment bubble. AI remains useful. What is likely to go away (and all at once) is investment and free rides/discounts.
So I expect more of a sobering process for AI companies rather than a blowup, simply because they all still will have cash in the bank and some have actual products with clients that make use of them.
Unlike the dotcom era, infrastructure is being built by mature highly profitable companies with broad product portfolios to exploit future trends and needs... Data-centres or even their power/water contracts seem like something with a lot of value even if we take a cynical view of LLMs profitability.
Am I overstating the case? My understanding is that a data center tends to be ‘purpose built’, so they may need a gutting for repurposing, but assuming a lot of ‘sobering up’ I’m envisioning several giant cloud providers with excess capacity and a scaling potential.
Be it Jevon’s paradox sparked by cheap compute, another huge tech fad, or a ML breakthrough that brings another kind of model to the forefront, we’re likely to want a lot of compute at some point. It doesn’t seem like bad long-term positioning for the tech giants or investors.