this post was submitted on 03 Apr 2026
447 points (99.6% liked)
Technology
83406 readers
5612 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related news or articles.
- Be excellent to each other!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, this includes using AI responses and summaries. To ask if your bot can be added please contact a mod.
- Check for duplicates before posting, duplicates may be removed
- Accounts 7 days and younger will have their posts automatically removed.
Approved Bots
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Makes sense. It takes years to complete construction projects and budgets always overrun. AI is a fad for most companies trying to get into it.
Think about the dotcom bubble. We went from having all of these businesses that shot to the moon for valuation... and then it collapsed. Feels exactly the same. A few will survive to become metas and googles because it is not a worthless technology, but most of them are going to be worthless companies when investors decide it's time to run.
Amazon and Google and basically all of FAANG/MAMA beg to differ.
And basically every company still has a website and ecommerce in general is still massive.
The Dot Com bubble was brutal. But it was not a collapse of the industry. It was much more of a correction after so many companies blew up to sell services like "rate my dog" and many of the smaller ecommerce sites were absorbed by larger ones.
And that is likely what will happen with generative AI. I expect a MUCH bigger bloodbath for openai but anthropic seem to have scaled a lot better (although they also are going into their IPO with a massive data breach...). But expect most of the smaller companies to similarly get gutted.
But
Data Centers exploding... honestly have little to do with AI. No... not the way they explode in the UAE... metaphorical exploding. The reality is that data centers are GOOD money. Basically every company needs data hosting and offloading internal infrastructure is... honestly a really smart play. Same with the massive push for streaming of basically everything so that nobody owns anything and subscribe to everything. You want regional data centers and... this is how you get them.
On the FAANG/MAAMA, he said explicitly some winners but a whole lot of losers, so you are agreeing with him. Of those titans, only Amazon and Google were arguably dot com darlings. Apple was pretty much left out of it and in bad shape, Microsoft did "ok" but was not really a darling of that bubble. Facebook, Netflix didn't exist.
The data center explosion has everything to do with the AI boom. That's the only change around the recent inflection point of growth. They were certainly prolific, but this is beyond. They are now demanding incredibly more power and cooling density than before. OpenAI by itself made purchasing commitments to the tune of 40 percent of the entire supply of ram production across all industries. Probably 75 to 80 percent of the recent plans would not have happened if not for the LLM craze.