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Wall Street is growing skeptical of the data center boom

72 points · 87 comments · mikhael

  1. lil-lugger · · focus · HN ↗
    Is there anyone serious who thinks that the future is local models anyway? All computers used to be the size of rooms like these data centers and then they got smaller and faster until the home computer came. Is that not a possibility down the line as we improve efficiency of the models and increase compute?
    1. Zigurd · · focus · HN ↗
      AI budgets and AI pricing have too much squish in them currently. Frontier models are being sold at a loss, and AI budgets are experimental. And there is still a whiff of FOMO in the air.

      Also, Google and Facebook are still spending like drunken sailors. Nobody has stubbed their toe on hard limitations yet. So yes of course people will figure out how to optimize the cost of AI in their products. Just probably not this year.

      1. johnbellone · · focus · HN ↗
        Google and Facebook have profitable businesses.
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