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The AI Investment Boom

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271 points m-hodges | 1 comments | 20 Oct 24 14:56 UTC | HN request time: 0s | source
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m101 ◴[20 Oct 24 21:56 UTC] No.41898811[source]▶
There is a comment on this thread about this being like the railroads, but this is nothing like the railroads except insofar as it costs a lot of money.

The railroads have lasted decades and will remain relevant for many more decades. They slowly wear out, and they are the most efficient form of land transport.

These hardware investments will all be written off in 6 years time and won't be worth running given the power costs and relative output. They will be junked.

There's also the extra risk that for some reason future AI systems just don't run efficiently on current gen hardware.

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tim333 ◴[20 Oct 24 22:32 UTC] No.41899046[source]▶
Some stuff like the buildings and power supplies will probably remain good. But year, probably new chips in a short while.
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jacurtis ◴[20 Oct 24 23:18 UTC] No.41899310[source]▶
Power plants and power infrastructure are probably an example of a positive consequence that comes from this.

We have been terrified to whisper the words "nuclear power" for decades now, but the AI boom is likely to put enough demand on the power grid that it forces us to face this reality and make appropriate buildouts.

Even if the AI Boom crashes, these power plants will have positive impacts on the country for decades, likely centuries to come. Keeping bountiful power available and likely low-cost.

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WillyWonkaJr ◴[20 Oct 24 23:36 UTC] No.41899434[source]▶
It is so bizarre that reducing pollution was not a sufficient driver to build more nuclear power, but training AI models is.
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1. n_ary ◴[21 Oct 24 15:00 UTC] No.41904922{3}[source]▶
It is all in the "what do I get in return right now?" concept. Reduce pollution is a promise to give back a safer Earth, save climate, make life less painful in future etc. which are all far away and the current generation in power will probably retire long before anything significant extinction level occurs.

AI on the other hand promises immeidate gain(lot of expensive job automation = cost cutting) as well as future return on investment. Like someone said, IT has returns realized quickly in few years, so that is more lucrative than /reducing pollution/.

Also, reducing pollution requires money spent(cost) and everyone is afraid of the cost if it does not promise at least x2-5 minimum return gain immediately(or in few years).