AI Is Too Expensive: AI is, as it stands, not economically viable for anybody involved other than the construction firms, NVIDIA, and the surrounding hardware companies benefitting from the irrational exuberance of a data center buildout that doesn’t appear to be happening at the speed we believed
https://www.wheresyoured.at/ai-is-too-expensive/
14 Comments
To date, ed zitron’s claims are more accurate than those of scam altman or slop musk.
Ecologically it would be an absolute disaster if the speed at which we are informed this expansion is taking place. It amazes me that plans can be made to build without the required resources in place.
That’s the case with any new technology. It usually takes years of development before it eventually makes a profit.
nvidia gets paid whether AI works out or not. that tells you everything about who’s actually winning here
This is a long, but excellent read.
No matter if you agree or disagree with the article’s content, this goes notably deeper and is better researched than the typical AI hype-good or AI hype-bad articles.
Recommended to anyone interested in GenAI technology.
TL;DR:
Ed Zitron thinks he’s better at finances and estimating demand than the most successful companies of all time
The industry will keep booming in the meantime
Too expensive for the US’ electricity infrastructure but China, on the other hand, is perfectly positioned to have a thriving AI industry. Especially since US entertainment copyright law isn’t enforced and the stigma and resistance from the public and unions doesn’t exist.
Yeah that’s why they’re faking literally everything to make sure most people have no idea how bad things are until it’s too late.
Imagine what people would do if they knew they would have no rights to anything in less than ten years.
Fake it til you make it.
he’s not thinking big enough on the long term impact of digital intelligence, and the vast wealth it will generate
There is no business model nor some killer app that is going to make them money without them inventing a need. Its currently the most incestuous and ouroboros-like business I have seen since the Fashion Industry (making a bunch of crap none of us will ever wear etc).
The AI companies need some kind of regulated society switch to force people to use them for “something”. A manufactured need that makes them the only game in town for exactly what they have already built. I think they will try to make “compute” the commodity and somehow ensure none of us can have powerful computers at home. I wouldn’t be surprised if we end up with an actual “token” economy. A token can let you play a game with top graphics for a few hours, or write your essays. Pricing us out of owning anything but a terminal, or just a smart phone and a TV. It has already begun, if only due to the centers themselves sucking up supply and jacking hardware prices.
You don’t make money in a gold rush digging in the ground, you make money selling shovels.
It’s almost as if the demand is artificial….
They are also late to the party. The fad is over, yet they are building and pissing money on it
Another day and another garbage source site….
What does the blurb mean with regards to construction companies? I’m confused there. Do they mean that the construction business uses it successfully or something else? It was extremely long with a table of contents and I saw nothing in regard to it there.