alt Hacker NewsStopping DC rollout effectively works as calling the bluff of AI.
AI is a hyped up nothing burger? AI demand retreats, lots of vacant compute, revenues sink (and the DC hold ends up being a (small) blessing in disguise for the labs).
AI lives up to it's hype? AI demand surges, capacity is severely constrained, margins explode as inference costs soar (and the DC block ends up being counter productive knee-jerk behavior)
The only way this plays out in anti-AI favor is if people stop using AI and demand goes down. Even if it flatlines, labs can rebalance towards inference and start harvesting those huge margins.
Replies
hnav • today at 7:17 PM
A lot of AI use is subsidized to get DAU. The only truly productive applications so far are are R&D and SWE.
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I don't agree with your description of how the ban is going to be counterproductive.
There won't be massive inference margins. The DCs will get built, in some other country. And in all likelihood they will continue to be built elsewhere even after the block is lifted.