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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. latchkey · · focus · HN ↗
      Home computers are still nowhere close to as powerful as a $500k+ 10kW server full of 1.5TB of HBM GPU compute.
      1. Zetaphor · · focus · HN ↗
        You don't need a data center to get real work done. Not every task requires "PhD level intelligence"
        1. latchkey · · focus · HN ↗
          That's the usual response, along with "you can't compete with free". But, look at how much money the frontier models are printing, it is obvious that the bell curve of usefulness is still centered around them.

          Let's also not forget that even the open models are not getting smaller, they are getting larger. Of course, you can distill them down into something that will fit on smaller compute, but at the end of the day, the data centers of compute, still play a huge role.

          1. ryanbrunner · · focus · HN ↗
            An easy counterargument is that the frontier models are swallowing all of the attention and money because they currently don't have a constraint of demonstrating that their value exceeds their cost. Take that away and it might turn out that cheaper models that are "good enough" and can be profitable are the more attractive route.
            1. Zetaphor · · focus · HN ↗
              Well said, they're competing on marketing rather than merit. Everyone defaults to the frontier instead of exploring more optimal options
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