Comment on At Davos, NVIDIA, Microsoft CEOs deny AI bubble
givesomefucks@lemmy.world 14 hours ago
So…
It’s not a bubble because…
“This is the largest infrastructure build-out in human history,” Huang said of active and promised data center projects. "And so the AI bubble is, comes about because the investments are large. And the investments are large, because we have to build the infrastructure necessary for all of the layers of AI above it."
It’s something we’re sinking money into soley because we’ve already been sinking money into it, and we don’t want anyone else to get ahead of us even though literally no one has found a way to monetize it enough to make back prior investments let alone new investments…
Like, he knows that’s literally the definition of an economic bubble, right?
Is he just trying to grift dumb rich investors, or does he legitimately not understand his company could go bankrupt literally at any moment if the investor class ever comes back to reality?
Don’t get me wrong, I totally agree These motherfuckers would scorch our planet for profit but this… feels different.
Is not a secret a lot of the most influential Billionaires are transhumanists (Elon Musk, Peter Thiel, etc).
But hey, it might as well be a grift to get on board other unsuspecting rich fucks…
Either way, we should put these power hoarding dragons to sleep, soon!
Trans-humanism probably requires a whole lot of failed experimentation first… You’d need a sort of systemic conveyor-belt of test subjects. How are you going to do that? Just rip people off the street under false pretenses?
…
It’s almost like hubris is blinding.
It’s his fiduciary duty to lie to everyone.
That’s how capitalism works, and the fact that the people who have steeped their entire lives in that game don’t see through it is… sad, to say the least…
Companies involved in large infrastructure build-outs are notoriously safe investments and never, ever, EVER end up with mountains of unservicable debt and a huge surplus of worthless, underutilized infrastructure that doesn’t fulfill any of its promises that inevitably gets sold off for fractions of a penny on the dollar. Except literally almost every fucking large infrastructure build-out anywhere in the world in all of human history.
It doesn’t matter what infrastructure or investments you look at: highways, train tracks, communications, real estate, skyscrapers, power generation, power transmission, oil extraction there are countless examples of greed-blinded companies JUST LIKE HIS doing EXACTLY THE SAME THING and eventually getting absolutely destroyed over it. The larger the infrastructure investment is, the worse it gets. There are only a handful of well-known success stories (which are well known because they are notable, not because they are common), and enough failures to pave a road to the moon and back.
Those who do not learn from history are doomed to repeat it, and I’m pretty sure Jensen Huang was too busy shopping for new leather jackets during history class to be paying any attention.
Sunken cost fallacy. These ceos are nothing more than addicts.
UnpledgedCatnapTipper@piefed.blahaj.zone 13 hours ago
Well nVidia just sells the hardware to the AI companies, so even if the bubble pops, they won’t go bankrupt. They will stop making such obscene amounts of money, but they’re one (also the largest) of the 3 major GPU vendors. Personal computing still would buy from them, as would non-AI datacenters. He wants to keep the bubble going for as long as possible to boost their profits for as long as he can, but as long as people need graphical rendering and parallel compute power, I don’t think nVidia is going anywhere.
Think of them as the guy selling prospectors their tools. They hype everything up and jack up their prices for picks and shovels. When the prospectors don’t find any gold to make their investment back, the shovel guy just goes back to selling shovels at normal rates and prices. Sure, he’s not making as much profit, but he’s still solidly in business.
givesomefucks@lemmy.world 12 hours ago
Except all those companies are in an investor circle jerk with each other…
If AI bursts it doesn’t just hurt nvidia’s sales of products used by AI.
Nvidia has over $100 billion invested in OpenAI:
www.cnbc.com/…/nvidias-investment-portfolio.html
And even more billions invested in other AI companies. Because the AI companies can’t afford to buy what Nvidia is selling at the price.
This means Nvidia “owns” a bunch of those AI companies, and can take loans out on the valuation…
If AI goes bankrupt, all those investments are worthless, which means banks call in the loans that used it as collateral. It could easily wipe out Nvidia.
It’s not just one surface level thing, even tho that’s all you seem to have thought of. You’re worried about a couple hundred million in sales like it’s not sitting next to 100 billion dollar loan.
Like bro, come on man…
Mika@piefed.ca 9 hours ago
Would just get classified as “too big to fall” and bankrolled by the government, cause you know, market.