I mean, the reason that all these stories about AI being an existential threat to humanity are coming out is because they've made $3.1T in debt-fuelled spending commitments and now interest rates are going up. "AI will kill us all if we don't regulate it" is their "get out of debt free" card, so they can have the U.S. government stop the arms race, raise prices on their existing models, and declare force majeure on new DC commitments:
It's telling that the only AI-related company that is not sounding the AI safety drumbeat is NVidia, who is the only one that is cash-flow positive because of AI.
I don’t think they need to worry about their finances just yet, this is the most in-depth financial analysis of the AI industry I’ve read so far and it seems the investments are (barely, so far) justified by the returns:
Another thing to consider is that most of the 3T CapEx spend is from hyperscalers free cash flow, and the debt is a smaller (but fast-growing) fraction. Napkin math suggests if all AI CapEx is written off today, hyperscalers could cover their debts in about 5-6 years using pre-AI levels of free cash flow.
Maybe Nvidia is not sounding the safety drumbeat because it stands directly to lose out if demand from training slows down ;-)
nostrademons · · focus · HN ↗
<a href="https://emeraldbook.org/news/sep-1426-3/" rel="nofollow">https://emeraldbook.org/news/sep-1426-3/
<a href="https://news.ycombinator.com/item?id=49830037">https://news.ycombinator.com/item?id=49830037
It's telling that the only AI-related company that is not sounding the AI safety drumbeat is NVidia, who is the only one that is cash-flow positive because of AI.
keeda · · focus · HN ↗
<a href="https://intelligence.exponentialview.co/" rel="nofollow">https://intelligence.exponentialview.co/
Another thing to consider is that most of the 3T CapEx spend is from hyperscalers free cash flow, and the debt is a smaller (but fast-growing) fraction. Napkin math suggests if all AI CapEx is written off today, hyperscalers could cover their debts in about 5-6 years using pre-AI levels of free cash flow.
Maybe Nvidia is not sounding the safety drumbeat because it stands directly to lose out if demand from training slows down ;-)