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AI winterTelegraph
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69% Informative
Goldman Sachs has published a report titled: “Gen AI: too much spend, too little benefit?’ If some of their more pessimistic observations come true, we’re all in for a bumpy ride.
The tech giants are predicted to throw $1 trillion at new data centres in the expectation of fulfilling demand for AI services.
But “build and they’ll come” supposes a lot of people will soon arrive.
Spending $1 trillion on data centres will look foolish in a few year’s time when chips are four generations more powerful.
This is capital incineration on a vast scale. Fear of losing out has driven the industry insane. Even for a boom and bust business, this crash may be quite spectacular.
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