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That is much less of a systemic issue though. It could kill OpenAI or Anthropic, but it wouldn't render these large GPU data centers obsolete since whatever rep
by olalonde 2mo ago
That is much less of a systemic issue though. It could kill OpenAI or Anthropic, but it wouldn't render these large GPU data centers obsolete since whatever replaces them, be it open models or cheaper closed models, would probably still require a lot of GPU compute.
- josh-sematic 2mo agoLess bad, yes. But still bad. There will definitely be demand for the compute, the question is whether it will be enough to keep the value of it at the levels you’d expect if the tenants were in a monopoly/duopoly world. Competition puts downward pressure on margins and that’d translate into pressure on data center leases.
- jcgl 2mo agoCould put pressure on data center margins, but not revenue, and not necessarily gross profit.
- hakfoo 2mo ago"probably still requires a lot of GPU compute" is something that would be very desirable to undercut. There's a galaxy of potential AI markets that are local-only for compliance/privacy/deployment environment reasons, and an equally large and overlapping set of use cases where you won't be able to bolt a rack of thousand-watt GPUs on the side of the device. What if the next "DeepSeek shock" is something we can run for non-toy use cases on our box of old Android phones? The GPU data centres could be expensive albatrosses very quickly. There's probably a case that right now, the bigger-is-better paradigm protects incumbents-- a smaller model will always have a FOMO factor unless it can be proven competitive, so that leaves the playing field to those who can afford to train and deploy a new Fable or Sol every few months.