The datacenters being built are designed bespoke for this generation of LLM based ai. They’re not really useful for anything else like serving webtraffic or normal compute nodes. Once the next generation of AI comes out that shows LLMs are just next-best-word-guessers, those datacenters will be worthless.
LLMs are useful for some things. I think they’re great as a replacement for googling “what do the reddit comments say about this product” or “how do I use this api”. But it doesn’t think. It cannot logically reason about things because it doesn’t actually know anything. It just has probabilistic representations of data embedded in its weights and biases.
Your point about the bubble bursting on debt vs real capital is correct though. The money is already spent and it already existed - it wasn’t financial products that were based upon debt that were turned into a capital product. So when it bursts, it will be more of a fizzle and it won’t tear down the entire economy. The failure will still result in many bankruptcies and layoffs but not all at once.
So when it bursts, it will be more of a fizzle and it won’t tear down the entire economy. The failure will still result in many bankruptcies and layoffs but not all at once.
100% this, which is the deception that will keep these people going for 10-15 years.
The datacenters being built are designed bespoke for this generation of LLM based ai. They’re not really useful for anything else like serving webtraffic or normal compute nodes. Once the next generation of AI comes out that shows LLMs are just next-best-word-guessers, those datacenters will be worthless.
LLMs are useful for some things. I think they’re great as a replacement for googling “what do the reddit comments say about this product” or “how do I use this api”. But it doesn’t think. It cannot logically reason about things because it doesn’t actually know anything. It just has probabilistic representations of data embedded in its weights and biases.
Your point about the bubble bursting on debt vs real capital is correct though. The money is already spent and it already existed - it wasn’t financial products that were based upon debt that were turned into a capital product. So when it bursts, it will be more of a fizzle and it won’t tear down the entire economy. The failure will still result in many bankruptcies and layoffs but not all at once.
100% this, which is the deception that will keep these people going for 10-15 years.