• Echo Dot@feddit.uk
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    4 hours ago

    I don’t understand what their long-term plan is here. Even if AI isn’t a bubble eventually all of the AI companies are going to get to a point where they don’t need more compute because they’re working on algorithmic optimisations because they decide that that’s cheaper.

    Then they’re going to have to pivot back to the consumer market. Except by that point it won’t even be a consumer market because China will have eaten their lunch.

    • Zeroc00l@sh.itjust.works
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      2 hours ago

      The plan is to continue making bank until the companies are done with them, then sell to consumers again without missing a beat.

      Source: the GPU shortage we just went through.

      Future source: the CPU shortage scheduled for 2026.

      • Echo Dot@feddit.uk
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        27 minutes ago

        That’s my point though they can’t do that.

        The market isn’t just going to wait around for them to get around to selling to consumers again. China is going to see an opening and they’re going to manufacture their own chips and make bank. Then when the traditional manufacturer is getting their head out of their arses then realise there market share has vanished. All 100% their fault.

        They have decided to shoot themselves in the foot because someone’s convinced them they won’t ever need legs ever again.

    • deltaspawn0040@lemmy.zip
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      4 hours ago

      These companies are controlled almost entirely by people who only really care about what the stock price will be sometime in the next few years or so.

      • M0oP0o@mander.xyz
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        1 hour ago

        We would need a better general network for that. Remember stadia? Nothing has changed since then, hell some areas have even lost some capacity.