Ed Zitron continues to journal just how psychotic investment in AI is and how much of it is pure kabuki. We have concepts of capacity and actual use…

The math does not math

https://www.wheresyoured.at/the-ai-industry-is-lying-to-you/

1/n

The AI Industry Is Lying To You

Hi! If you like this piece and want to support my independent reporting and analysis, why not subscribe to my premium newsletter? It’s $70 a year, or $7 a month, and in return you get a weekly newsletter that’s usually anywhere from 5000 to 18,000 words, including

Ed Zitron's Where's Your Ed At

It’s interesting to pair the article content with the mad Rush to build new power generation in the United States, especially emphasizing nuclear power. In order to actually expand data center operation all the parts have to be available. The buildings the grid the power generation the chips. If you don’t have all of it, the investment doesn’t yield revenue.

AI is the largest miss allocation of resources the “market“ has produced yet.

2/n

Unlike the dot combo which laid fiber optic which has a 20 year life the most expensive component of a data center the GPU’s have an estimated or average lifetime of about 18 months.

Economist that suggests that this economic bubble will certainly involve a crisis in a downturn and recession nor a depression, but the infrastructure build out will still remain, and the world can presume it’s inevitable rise to a brighter future.

3/n

There is just one problem with this assertion made from macro economists: the infrastructure build out is an illusion. It’s a digital tulip in every sense of the word because it lasts about as long as a cut of flower.

I don’t think the dry decay remains of a flower it can power a future economy
N/n