This is the core of my belief that data center construction is a huge bubble.
AI is not a bubble, IMO, though we may see a retrench and some companies with sky-high valuations will crash to more reasonable ones. But data center demand is probably a bubble, and the main driver will be reduction in the actual amount of power and data center space required to serve escalating demand.
I think hardware and model improvements will pace or maybe outrun demand and then when demand starts to saturate will keep going and leave a lot of orphaned data centers.
api · · focus · HN ↗
AI is not a bubble, IMO, though we may see a retrench and some companies with sky-high valuations will crash to more reasonable ones. But data center demand is probably a bubble, and the main driver will be reduction in the actual amount of power and data center space required to serve escalating demand.
I think hardware and model improvements will pace or maybe outrun demand and then when demand starts to saturate will keep going and leave a lot of orphaned data centers.
preommr · · focus · HN ↗
When people say "AI is a bubble", they mean economically as a whole, which includes data centers.
Perhaps we need better terminology for "product useful; numbers nonsensical"