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Here is what I'll push back with: Even if somehow you had the super hero ability to create this silicon out of thin air and even double it, I'd argue that it w
by midas89 21d ago
Here is what I'll push back with:
Even if somehow you had the super hero ability to create this silicon out of thin air and even double it, I'd argue that it wouldn't drive down prices.
Simply because both the AI datacenter's need and their ability to pay is bigger then the consumer market. So far it seems that the more silicon you throw at AI, then the better your reasoning output. So the cheaper the chips, the more these datacenters will buy. Arguably they would buy even more because then you can tell investors that you have more powerful models (due to more compute) and your price per output is cheaper (because average hardware is cheaper).
- cedilla 21d agoIsn't too early to see if the Gigadatacenters will really pay off? I'm not trying to be an AI doomer here, but I thought the new really large DCs are just not yet online.
- friendzis 21d agoYour argument relies on two assumptions: 1. That a new player would offer enterprise level product, instead of consumer grade. IMO it's very likely that if such a scenario unfolded, the market would be segmented into enterprise/consumer not only at the product level, but at the supplier level too. At least initially. 2. That AI compute demand is essentially unlimited AND silicon production capacity is and will remain bottleneck in datacenter buildouts. IMO we are much closer to the point where physical infrastructure becomes the apparent bottleneck than it would seem, IF political climate allows. Datacenter buildout is THE talking point in Ohio elections and if the dems win, datacenters will become THE talking point in the whole USofA. In just a couple of months the landscape they are operating in could become very different.