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After a hypothetical AI crash, the cost of hardware will plummet. It will suddenly become quite affordable to spin up a GPU or five on-prem to host a couple of
by estimator7292 9mo ago
After a hypothetical AI crash, the cost of hardware will plummet. It will suddenly become quite affordable to spin up a GPU or five on-prem to host a couple of models for internal use.
The only reason hardware is so expensive now is to scalp the hyperscalers. Once that demand crashes, the supply will skyrocket and prices will crash.
- program_whiz 9mo agoFair point -- but my overall point about how much users may have to pay to make these companies profitable stands. Maybe if prices stay depressed for years, but these companies are doing buildout at current prices, and they need to make returns on hardware they are buying now. I suppose they could bank on prices coming down in 2 to 3 years by a factor of 10, then current price ($200 per month) might be profitable (disregarding training, employees, power, etc).