Technology

Is there enough demand for thousands of servers with purpose built ARM processors (which may or may not have any publicly available kernel support) driving 4-8 600w a pop Nvidia datacenter chips though? Yes some will be repurposed but there simply won't be the demand to fill immediately. Realistically what will happen is companies operating these datacenters will liquidate the racks, probably liquidate some of the datacenters entirely and thousands of servers will hit the secondhand market for next to nothing. While some datacenter structure city empty and unmaintained until they're either bought up to be repurposed, bought up to be refurbished and brought back into datacenter use of torn down, just like an empty Super Walmart location

Some of the datacenters will be reworked for general compute, maybe a couple will maintain some AI capacity, but given the sheer quantity of compute being stood up for the AI bubble and the sheer scale of the bubble, basically every major tech company is likely to shrink significantly when the bubble pops, since we're talking companies that currently have market caps measured in trillions, and literally a make up full quarter of the entire value of the New York Stock Exchange, it's going to be a bloodbath.

Remember how small the AI field was 6 years ago? It was purely the domain of academic research, fighting for scraps outside of a handful of companies big enough to invest in am AI engineer or two on the off chance they could make something useful for them. We're probably looking at a correction back down to nearly that scale. People who have drank the coolaid will wake up one day and realize how shit the output of generative AI is compared to the average professional's human work

Oh yeah machine learning as a technology will survive, and eventually it will be implemented where it can do what it's really good at, but right now it's being shoved into everything to do things it isn't good at, so you end up with a super expensive to run, energy inefficient tool that runs worse than with traditional algorithms that can be run client side or on a single much cheaper server (I'm oversimplifying the server architecture for brevity)

Think customer service chatbots on ever car dealership's website. Traditionally these were extremely simplistic and usually just had canned responses based on keywords in the customer's written message and would quickly cascade the customer to a real customer service rep as soon as things got out of scope. Now with LLMs companies are running those as the customer service chatbots and the LLM can do anything from agreeing to sell a new car for a dollar to providing scam or invalid contact info to referring the customer to a competitor. There's no knowing what the AI will do because it's non-deterministic and you don't want that in customer service!

Right now we're in the bubble phase where every single company is finding some way to shoehorn AI into its business model so they can brag about it. Fucking Logitech added a remappable AI button that brings up a ChatGPT interface and just spends Logitech's money on tokens with ChatGPT. That's pure bubble behavior. Once the bubble pops we won't have literally every single time you open a car dealership page spending an LLM token or 5, you won't have Amazon running AI chatbots on every product page just for asking about that product, you won't have every website just giving away free unrestricted access to LLMs. That's what I'm talking about.

AI demand will drop when the bubble pops, and while it will be higher than it was 8 years ago, everyone is going to be very skeptical of anything AI, just like folks are still skeptical of mortgage backed securities over 15 years later, or just like people are skeptical of commerical websites without a clear method of financing 25 years after the dotcom bubble. People remember these things and will take a while to warm up to the idea again