News report (WSJ):
OpenAI recently missed its own targets for new users and revenue, stumbles that have raised concern among some company leaders about whether it will be able to support its massive spending on data centers.
Well, duh.
Katie
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It’s almost like there is no business model.
Huh, who knew?
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It seems that the massive expansion of data center capacity to support OpenAI, Anthropic, etc., has an aspect not covered in the general press: hardware ages out and goes obsolete pretty quickly in the scheme of things. Maybe 2-3 years or so for the GPUs, etc.? So, in addition to all the current investment, the present value of all the replacement investment could dwarf the numbers we see in the headlines. There would have to be a significantly steep efficiency curve to reduce the cost of producing AI in the out years.
Good time for a bubble burst to restore reality.
Katie