this post was submitted on 30 Apr 2026
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The economic model for the AI industry brought to us by Wall Street and Silicon Valley is falling apart, with subscription fees paid by users which are far below the companies' cost of compute.

The companies also face severe blowback for new data center construction almost everywhere, and constraints on power grids and capital budgets have delayed dozens of projects.

Top managers of Silicon Valley AI companies are also, finally, facing harsh public scrutiny, particularly after the disastrous opening days of the War on Iran.

The Artificial Intelligence industry is comprised of five layers: energy, chips, infrastructure, models, and applications.

Now that Chinese Large Language Models are optimized to run on Chinese-built chips, are are soaring in popularity across the world by enterprise users, even top US industry insiders admit that Chinese tech will dominate going forward.

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[–] ryepunk@hexbear.net 4 points 3 months ago