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Yeah, except you can keep on squeezing these lemons for a long time before they run out of juice. Even if the model training part becomes less worthwhile, you
by brokencode 11mo ago
Yeah, except you can keep on squeezing these lemons for a long time before they run out of juice.
Even if the model training part becomes less worthwhile, you can still use the data centers for serving API calls from customers.
The models are already useful for many applications, and they are being integrated into more business and consumer products every day.
Adoption is what will turn the flywheel into a rocket.
- mentalgear 11mo agoWell, the thing is that that kind of hardware chips quickly decrease in value. It's not like the billions spend in past bubbles like the 2000s where internet infrastructure was build (copper, fibre) or even during 1950s where transport infrastructure (roads) were build.
- brokencode 11mo agoData centers are massive infrastructural investments similar to roads and rails. They are not just a bunch of chips duct taped together, but large buildings with huge power and networking requirements. Power companies are even constructing or recommissioning power plants specifically to meet the needs of these data centers. All of these investments have significant benefits over a long period of time. You can keep on upgrading GPUs as needed once you have the data center built. They are clearly quite profitable as well, even if the chips inside are quickly depreciating assets. AWS and Azure make massive profits for Amazon and Microsoft.