posted in Technology
Data Centers Are a $6 Trillion Time Bomb, Analysts Warn: "What the industry needs is a wave of innovation that will dwarf what mobile and cloud unlocked."
futurism.com/future-society/data-centers-trillion-capital-time-bomb-bainReplying to @eicker@lemmy.world
AI’s business model is starting to look less like a revolution and more like a $6 trillion IOU. Bain says existing AI services may cover just $1.8 trillion by 2031, leaving a $4.2 trillion hole to justify the data center frenzy. Apparently the killer app is still: »please invent enough revenue before the depreciation schedule catches us!!!«
Replying to @eicker@lemmy.world
Even if AI takes off the way people hope it will, that does not mean that data center investments will pay out.
Local models exist and are a viable alternative (partially to substantially to completely) to sending every query to a centralized data center that is extracting profit from every token.
On top of that, everyone is now aware of the risks of tech dependency, and big players, the ones that would be sending their money to OpenAI or Anthropic, are the ones best able to declare their independence.
Replying to @schipelblorp@sh.itjust.works
That’s also ignoring the access to data question. Who knows how much the providers are logging. It wouldn’t surprise me if “new companies” pop up out of the blue with surprisingly competitive hardware and software sometime in the next decade.