More and more mainstream analysts are identifying the coming AI crash, which is a good indication that it will happen soon.
So, what happens to all the data centers? They are already built but probably very expensive to maintain. Will many of them just be abandoned? Bought up by cloud computing companies? Scammers? Crypto miners? Can they be parted out and sold off piecemeal?
Will they be put to some productive use, or just become massive e-waste sites left to the locals to deal with?
I wonder how big is the bubble. But few years of cut to military spending? Or public bailout. I bet Trump will make sure it won’t burst during his presidency.
The ones being built or planned to be built will have to be sold off.
Probably not abadndoned, but land owner changing several hands in what is essentially someone buying a vacant lot. Maybe a handful will reuse any existing building already made, but most will be used for something new.
The existing ones will start their fight to the lowest market price which will probably cause many to either sell to a different cloud provider or change hardware to something more profitable.
None of the electronic hardware will go to waste because there will always be a demand for it, even if they sell it off at a loss. But any permanent fixtures like industrial cabling, ventilation, piping, etc probably will be wasted.
There’s still no guarantee on whether it’ll implode or just slowly deflate though. The natural assumption would be that the post IPO pricing will completely wreck sales and value, but they could easily move to an enterprise vendor lock scenario where they can charge whatever they want due to tech stack deals like how MSFT runs teams.
Remember, they’ll do anything in their power to keep the pumping going, even if it involves tax bailouts.
Hire funny wood it be if they tried to get a tax bail out and Trump approved it but he actually can’t do it since there’s no money left to bail them out
They will stop pretending they’re data centers and we will start calling them what they really are, surveillance centers
mainstream analysts are identifying the coming AI crash
If so many people /experts are expecting a crash, the crash chances will be more and more included in the price. So far, I don’t see that at all.
They tried to make pension funds into bag holders before those IPOs got blocked. I think the desperation surrounding getting those stocks added in 5 days should be a better indication than price.
Where did you read that the IPOs got blocked?
They decided not to change their rules to allow these unhealthy stocks in. They have to do the full process instead of skipping the line to make pensioners into bag holders as opposed to Altman and friends.
They’re not blocked but they’re never going to be healthy enough to be added before they implode.
If I smother OpenAI to death by denying them oxygen for 5 minutes did I “block” the entry of air into their lungs, or did they just not breathe for 5 minutes?
The new pan is to just push to retail using hype and social media manipulation.
Well at least that’ll only wipe out half of my pension instead of all of it
As soon as they can be force listed on every index the will take the rest!
I think they will leverage what money they raise via stocks sales to continue the buildout of the mainframe surveillance state.
They’ll try. Once this bubble pops there literally isnt enough money for the US to print their way out of it. It’ll be a default on US treasuries since they got all the blood they’re going to get out of the working class the last 3 times they printed infinite money. I think we’re soon about to meet that can multiple generations of corrupt politicians and bankers have been kicking down the road.
Socialize the losses.
However it pans out, the big money’s endgame is consolidation of wealth, making everyone below them noticeably poorer, and everyone else involved believes they can ride the wave.
Data centers that became worth running before the pop will have a change of ownership continue to run. Anything else will be gutted and parted out or dumped in a bin depending on the quality and skill of the vulture. It will be done with the least amount of empathy imaginable.
Cheap hardware sales?
What do you mean cheap? Those are literally the most expensive racks ever.
Get ready for the 2040 internet trend “spending the night in an abandoned data center”
Horror movie idea: The Rackrooms
If they’re abandoned, they could be filled with storage containers, and people could live in them. I hear access to water and electricity is already set up.
You vastly underestimate the price of the machines. Data centers might change hands but they will always exist because the machines need a building regardless of what happens
What will happen to Trump’s family when he gets arrested and trialed for rape and treason?
Both questions have a problem of false premise or whatever is the right word.
That shit is here to stay.
They will turn into Fry’s Electronics stores, sell their inventory of memory, storage and GPUs, and the cycle will be complete.
After 2008 whole half-built neighborhoods were just left to rot and abandoned.
That’ll happen with data centers too.
Cheap datacenters for sale to the surviving AI companies. It’s not like all things AI will disappear just because the bubble pops.
A lot of green growth, as we die off from the aftermath of what they did.
Hopefully the used storage would flood the market and drive down prices.
I think thats wishful thinking. I don’t think that most of what goes in a modern datacenter has much use outside of a datacenter.
Nah, they’re gonna try to recoup their loss. Ram, processors, and graphics cards have value outside of a data center. As long as there is money to be made, the hardware will be sold
The GPUs they’re using don’t have video output, take the energy of a furnace and are fanless (rely on the high air flow of a very noisy server rack). And they’re not using a standard pcie connector.
The CPUs are the same, big like a smartphone, require a massive cooler and a massive motherboard
Motherboards are difficult to repurpose as they require two massive processors
RAM is registered ecc and thanks to Intel almost no consumer hardware supports that.
SSDs maybe we can buy a cheap pcie adapter on AliExpress, but the data lines on a consumer processor are not too many so you can realistically put 1-2 in your PC, not dozens like the old SAS server drives. And also they’re toasty as they assume the case is giving high air flow
