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>If anything, the prices have reflected less than 20% of Capex projections, so the market clearly thinks OpenAI / Stargate / FAANG's capex plans are BS. I'd sa
by vonneumannstan 1y ago
>If anything, the prices have reflected less than 20% of Capex projections, so the market clearly thinks OpenAI / Stargate / FAANG's capex plans are BS.
I'd say if anything the market is massively underestimating the scale of their capex plans. These things are using as much electricity as small cities. They are well past breaking ground, the buildings are going up as we speak.
https://www.datacenterdynamics.com/en/news/openai-and-oracle-to-deploy-450000-gb200-gpus-at-stargate-abilene-data-center/ https://www.datacenterdynamics.com/en/news/openai-and-oracle...
https://x.com/sama/status/1947640330318156074/photo/1 https://x.com/sama/status/1947640330318156074/photo/1
There are dozens of these planned.
- nextworddev 1y agoThink we said the same thing
- andoando 1y agoOh jesus. I think AI is useful, but I figure 95%+ of it used on complete nonsense.
- lazide 1y agoSame thing happened with the dot-com boom and bust, except with fiber (later called dark fiber) and datacenters. A lot of people lost a lot of money. Post bankruptcy, it also fueled the later tech booms, as now there was a ton of dark fiber waiting to be used at rock bottom prices, and underutilized datacenters and hardware. Google was a major beneficiary.
- nextworddev 1y agothink you are mis-quoting some of the poorly written vendor financing articles / linkedin posts. the market hasn't priced in Sam Altman's Capex projections, so it's probably akin to 1998 or 1999
- lazide 1y agonope, just forecasting based on lived experience.