this post was submitted on 29 Jul 2025
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The current situation is a bubble based on an over hyped extension of the cloud compute boom. Nearly a trillion dollars of capital expenditure over the past 5 years from major tech companies chasing down this white whale and filling up new data centers with Nvidia GPUs. With revenue caping out at maybe 45 billion annually across all of them for “AI” products and services, and that’s before even talking about ongoing operation costs such as power for the data centers, wages for people working on them, or the wages of people working to develop services to run on them.
None of this is making any fucking profit, and every attempt to find new revenue ether increases their costs even more or falls flat on its face the moment it is actually shipped. No one wants to call it out at higher levels because NVIDIA is holding up the whole fucking stock market right now, and them crashing out because everyone stoped buying new GPUs will hurt everyone else’s growth narrative.