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I've been through several network upgrades. You are saying the fiber in the ground lasts a long time, but all the equipment on either end gets replaced every ~
by FrustratedMonky 2mo ago
I've been through several network upgrades. You are saying the fiber in the ground lasts a long time, but all the equipment on either end gets replaced every ~5 years. I agree this build out seems pretty crazy, but people were saying the same thing with the internet. Arguing if the equipment has a replacement rate of 2-6 years or 30-40 years, I think isn't the part that makes this a bubble.
- kibwen 2mo agoFor fiber, the main costs were not the fiber itself, but acquiring the rights to lay the fiber and the labor to do so. The equipment at either end has a lifespan of somewhat less that 50 years, but that's a minor cost. Conversely, for the data centers we're talking about, the cost of the things that need replacing every five years is one of the primary costs.
- FrustratedMonky 2mo agoI was responding to you mentioning fiber. But of course, the "internet" does run on servers, which also have a replacement rate. There were data centers before AI, and they had a lifespan well below 30 years. I'm not arguing that the current build out isn't crazy, just that AI isn't going away. Just like everyone thought the internet was a fad, but then it continued to grow (remember web 2.0). AI will morph into something useful and will be sticking around, even if we can't envision what it will look like.