The AI bubble is starting to pop. All of these companies have made hardware and data center investments far beyond what is needed or can be sustained. The debt is piling up and they are scrambling to justify the immense build out. Musk allowing porn and CSAM on Grock for paid users , Chat GPT pushing commercials, Microslop putting copilot in everything and forcing adoption. Oracles server utilization remains low, Etc. etc.
They now need to show immense growth and adoption in order to keep getting loans or justify burning cash to their shareholders.
Chat GPT and Oracle will be the first to fall, then xAI etc. Google and Microslop have other revenue sources that can weather the storm. But they won’t continue their massive investments.
I’m pretty sure the massive buildout is for training new models not for compute power for end users. Their justification is they need more compute to get the superhuman level intelligence AIs that they have been claiming. So if that pans out their probably gonna be fine, but seems unlikely that’ll pan out how they want it to
The AI bubble is starting to pop. All of these companies have made hardware and data center investments far beyond what is needed or can be sustained. The debt is piling up and they are scrambling to justify the immense build out. Musk allowing porn and CSAM on Grock for paid users , Chat GPT pushing commercials, Microslop putting copilot in everything and forcing adoption. Oracles server utilization remains low, Etc. etc.
They now need to show immense growth and adoption in order to keep getting loans or justify burning cash to their shareholders.
Chat GPT and Oracle will be the first to fall, then xAI etc. Google and Microslop have other revenue sources that can weather the storm. But they won’t continue their massive investments.
I’m pretty sure the massive buildout is for training new models not for compute power for end users. Their justification is they need more compute to get the superhuman level intelligence AIs that they have been claiming. So if that pans out their probably gonna be fine, but seems unlikely that’ll pan out how they want it to
It’s the grift that keeps on grifting. How long can it keep going