Looking more like insider trading scam than AI bubble: Open AI raises commitments/partnerships to 36GW with new 10gw Broadcom deal (www.cnbc.com)
from humanspiral@lemmy.ca to technology@lemmy.world on 13 Oct 19:23
https://lemmy.ca/post/53326363

An AI bubble requires actual AI capabilities to be built and to fail to be called that. A stock trading scam on AI stocks is just a stock trading scam.

36GW is 36 times current US corporate owned AI datacenter capacity. All of it made at TSMC which runs full tilt as it is. TSMC’s current plans is to 2x (over 3nm today) 2nm node by 2028. 4x by 2031 would still mean 2038ish to satisfy just OpenAI demand.

A big problem with having so many partners that OpenAI has no actual money to pay, is that no one has the confidence to place big TSMC capacity unless they are sure OpenAI actually buy from them, with money they get on time to buy from them. There are definitely consumer AI/gaming capabilities that can have more certain demand than the datacenter impossibilities.

Each additional announcement makes the joke more impossible to believe. CISCO did not do this during 1999 bubble. People just assumed its growth would continue.

Fine, OpenAI revenue growth may reach 3x at end of this year. At losses equal to its revenue number in 2024. OpenAI already has the most expensive models.

#technology

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just_another_person@lemmy.world on 13 Oct 19:47 next collapse

This is absolutely insane. It’s so top heavy there is no way this will do anything but spectacularly fail, and take the entire economy with it.

FlashMobOfOne@lemmy.world on 13 Oct 21:16 next collapse

Oh yeah.

Knowing that it’s just seven companies propping up the US economy, and the private ones don’t have to publicly report if they just lost half a trillion dollars, it gives one pause. I’m definitely reevaluating if and when I want to move my investments to cash.

xia@lemmy.sdf.org on 13 Oct 23:22 collapse

I guess AI is best measured by how much power it consumes… ?

KnitWit@lemmy.world on 13 Oct 23:28 next collapse

Only tangible thing it produces.

humanspiral@lemmy.ca on 13 Oct 23:53 collapse

that is how OpenAI measures all of its deals. the GPU providers DGAF about that measure, and “real deals” will be for x number of gpu’s instead. OpenAI PR make stonk go up, is vagueness everyone else seems to enjoy. It makes 0 sense in any deals these companies can make. It just scares the rest of us for how much the power bill go brrrr.