Generative “AI” data centers are gobbling up trillions of dollars in capital, not to mention heating up the planet like a microwave. As a result there’s a capacity crunch on memory production, shooting the prices for RAM sky high, over 100 percent in the last few months alone. Multiple stores are tired of adjusting the prices day to day, and won’t even display them. You find out how much it costs at checkout.
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