this post was submitted on 30 Oct 2026
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He seems pretty scared of locally run AI. I always had a hunch that this will break the necks of all those AI corporations. If you can just have your own AI agent instead of being under the control of those tech bro freaks, then it's only businesses and government institutions that are left as clients. Of course you need good enough hardware for that, but it's just a matter of time until such hardware becomes affordable to the masses.
You can run it on a mid range gaming PC just fine these days. Which is why he's terrified
Yeah, people don’t really get the point of the massive data centers. While they do need a decent chunk of infrastructure to run their models for customers, a large amount of it is just for training, data processing and collection, and other R&D tasks.
The models themselves, once trained, are much more reasonable in terms of computation.
it also means that once the model has been trained to the point of diminishing return the data center just becomes a pollution factory that does nothing
which to be fair is what they already were but this also may be where we are
More models! More training! Infinite growth!
When the bubble pops (or at the very least when all that data center hardware gets obsolete) GPU and RAM prices gonna TANK. I'm not a fan of AI, but by that point, local-run models will be extremely cost-effective.
Only reason AI companies are even slightly competitive on price currently is because supply hasn't yet caught up to their mass cut-price purchases, plus the fact they're subsidising price still on huge losses.
There is a very high probability that the hardware companies will significantly reduce their production to keep the prices from falling.
I'm sure they will reduce their production, but unless they convince most datacentres to chuck their old hardware, I don't think it'll be close to enough to accommodate the flood of hardware to come.
We've already had a year of massive over-production, and rising still. Even better, Chinese companies have been increasingly entering the market and they don't tend to stop for sheet.
Unless the bubble pops very soon, no amount of reducing production will stop an oversupply.
I don't think that the datacenter hardware is going to the retail market instead of getting bought by the surveillance state as a form of bailout.
The surveillance state does not have need (nor dare I say, even want) of a trillion dollars worth of RAM.
They are going to use those datacenters to radically expand and automate surveillance.