“What the industry needs is a wave of innovation”
Narrator: They didn’t innovate
The only innovations made are new and unique ways to screw taxpayers and the general public
I believe this is report all those articles are referring to https://www.bain.com/insights/new-innovation-is-required-to-fund-ais-6-trillion-buildout-technology-report-2026/the financial logic behind the data center buildout simply doesn’t hold up.
need to change assumptions that it requires a decent end ROI, or good economic proposition, when analyzing logic.
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Greater fool theory. Hype hype hype to cash out at IPO or buyout. Circular financing is your friend. Outright fraud of 5x more expensive data centers in space that are only useful for slow inference.
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There’s nothing else for the US to spend on, and aspirationally seek economic competitiveness with China. A race to end US employment for higher oligarch profits, as a bribe to narcissist in chief, becomes somehow MAGA.
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Skynet government surveillance, fascism, and geopolitical dominance. Government will buy all of the tokens or China wins. US fascism/oppression will increase to protect Israel first establishment power, or China wins. There can be no guardrails on US government, or AI bond villain, use of models, or China wins. Zero regulatory discussion exists on preventing the pursuit of Skynet, and “whoever wins AI, wins” is only/purely a Skynet goal, and it is policy unanimity. https://naturalfinance.blogspot.com/2026/09/a-global-prosperity-manifesto.html
An irony in 2nd/3rd point is that industry is fully aware that about 90% of tokens in SEA area datacenters are consumed in China, and it is one of biggest areas of new datacenter developments. So some chain of control in the profit/revenue flow from token sales to China is a near term priority over skynet dominance over China.
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you know where innovation comes from?
independent research.
you know what the oligopolies hate?
independent research.
pick one. you can’t have it both ways.
Working on it.
I said it years ago: it’s hard to improve on a tiny personal computer with millions of free apps and access to all the people and information in the world. The next step will be some sort of brain-computer interface that will let you access all the information instantly but it’s decades away.
Claude, create an innovation which will dwarf what cloud and mobile unlocked. There we go. I’m a bit of an innovator.
My preparer randomly told me that he had invested money with a guy who was developing a “reactionless space drive”. He then mentioned that the guy had solved all the problems he was having with it by asking ChatGPT about it. I asked him if the guy had a working prototype yet and he said no but it was sure to work.
Time to find a new tax preparer.
a fool and his money will soon be parted.
Innovation?
That’s just code for “Find a way to fuck consumers out of their money withoit actually giving them anything.”
Time to call the great innovator, Donald trump.
What the industry needs is to fail catastrophically and destroy the fortunes of as many billionaires as possible.
That would lead to an AI ice age. Surely not the worst development for Gaia and her children.
AI will save money, and make very little. The business will collapse, but the effects will be permanent in so far as they can. We’re stuck with some AI for good, unfortunately.
Just enough to keep people from going into withdrawals. A little AI, as a treat.
I’m sure they will keep hardware exorbitantly expensive for as long as possible to push ppl to the subscription model. I would love to run local models, but the cost of hardware versus performance is too high compare to cloud at this point in time. I might break even in 5-10 years, but the hardware may be out of date by then. I hope things will level out in a few years. And I agree the us gov will try to ban non-us models and hardware. They may even bail out the ai companies because they will be too big to fail. Also expect ai and robot companies to get massive military contracts.
A message to the industry:
Fuck yourselves, you traitorous, awful, slimy, scummy, pee brained, flee bitten, rabid, child raping, terrorist, ego driven, scumbag, sacks of monkey shit. Holy shit; hallelujah
Once there is enough adoption, expect token costs to skyrocket and advertising enshitifaction to accelerate. We are still in the “first hit is free” stage of ai drug addiction.
Once there is enough adoption, expect token costs to skyrocket and advertising enshitifaction to accelerate
Models on local hardware that give adequate performance and the availability of non-US models mean that path is doomed to failure. If they crank up the price then people will look elsewhere. While they might not get frontier-level performance out of the alternatives, there’s plenty of stuff out there that’s good enough for 1/4 to 1/10th of the cost. Or just the cost of power, if you’re willing to pay for some hardware and are operating on a small scale.
The only play the AI companies have got now is twofold :
- Regulatory capture, hence all the press releases of basic and frankly embarrassing sandbox failures and “we need to slow down” talk to try and get that rolling, and
- Banning of those nasty, evil, non-US models in the name of national security.
And then what? The rest of the world will just move on to the next most useful thing on the list. There will be ~330 million US citizens to extract wealth out of, to service trillions in data centre debt. That shit’s not gonna fly.
If they crank up the price then people will look elsewhere.
And, in last 2 weeks, the 2 leading US labs have reduced prices. Trend is going the opposite way.
I run Qwen 3.8 27B, which seems pretty comparable to Sonnet 5 for coding and other tasks. Qwen 3.6 was in the neighborhood of Sonnet 4.6. Qwen 4 27B is supposed to drop in the next couple months and we’ll see how it compares to Sonnet 5.5, which benchmarks at Fable / Mythos level.
If the trend keeps up, not sure how useful those data centers will be when a gaming PC is a few months behind the frontier.
Why do you think they’re doing ethics promises now? I have a feeling that all the third party models are going to fail the ethics tests and now that nvidia owns huggingface it’ll be very easy to ban them in the states.
Download your models now
Yep, I assume that’s the plan, though HuggingFace isn’t the only game in town. Hugging Bay, ModelScope, and I assume a horde of others will fill the void if HF goes downhill.
I’m sure they will keep hardware exorbitantly expensive for as long as possible to push ppl to the subscription model. I would love to run local models, but the cost of hardware versus performance is too high compare to cloud at this point in time. I might break even in 5-10 years, but the hardware may be out of date by then. I hope things will level out in a few years. And I agree the us gov will try to ban non-us models and hardware. They may even bail out the ai companies because they will be too big to fail. Also expect ai and robot companies to get massive military contracts.
The companies that replaced employees with AI are already entering the “find out” stage.
So, that’s the best we’ll ever get?
Sure, I’ll just call the boys down at the lab and tell them to do that!
Those PhD students just need a grant
I take a market crash of apocalyptic proportions over a cloud dystopia any day.
