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The AI industry in the US is doomed. Now China owns it all. | Inside China Business (www.youtube.com)

submitted 3 months ago by Yuritopiaposadism@hexbear.net to c/technology@hexbear.net

4 comments fedilink hide all child comments

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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[–] LaughingLion@hexbear.net 6 points 3 months ago

ill say it again

is there is to be an "ai race" then china will win simply because it has the energy capacity to meet the demand pure and simple

the west will never be able to compete because electricity is the single largest cost to run these datacenters

that said i firmly believe that local models are the future and all this is irrelevant

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

michael-laugh

[–] eldavi@lemmy.ml 4 points 3 months ago

i started working at a non-profit a little over a year ago and we do education for lower income college student; a lot like i was when i was in college and i graduated during the the dot com bubble burst and then i got hit by 2008's subprime burst and never fully recovered.

learning that the ai burst is going to dwarve the ones i've experienced combined makes empathetic to these students are graduating w similar degrees in a city with a ridiculously small tech sector and these sorts of prospects.

[–] HexReplyBot@hexbear.net 2 points 3 months ago

I found a YouTube link in your post. Here are links to the same video on alternative frontends that protect your privacy: