IBM CEO says there is 'no way' spending on AI data centers will pay off

Post by danans » Wed, Dec 03, 2025, 12:38 AM UTC

coliveira wrote: post #111

nashashmi wrote: post #93

Don’t worry. The same servers will be used for other computing purposes. And maybe that will be profitable. Maybe it will be beneficial to others. But This cycle of investment and loss is a version of distribution of wealth. Some benefit. The banks and loaners always benefit.

That would be true for general purpose servers. But what they want is lots of special purpose AI chips. While is still possible to use that for something else, it's very different from having a generic server farm.

Post by AstroBen » Wed, Dec 03, 2025, 12:39 AM UTC

ayaros wrote: post #37

scroot wrote: post #24

As an elder millennial, I just don't know what to say. That a once in a generation allocation of capital should go towards...whatever this all will be, is certainly tragic given current state of the world and its problems. Can't help but see it as the latest in a lifelong series of baffling high stakes decisions of dubious social benefit that have necessarily global consequences.

I'm a younger millennial. I'm always seeing homeless people in my city and it's an issue that I think about on a daily basis. Couldn't we have spent the money on homeless shelters and food and other things? So many people are in poverty, they can't afford basic necessities. The world is shitty. Yes, I know it's all capital from VC firms and investment firms and other private sources , but it's still capital . It shou…

Post by bigwheels » Wed, Dec 03, 2025, 12:43 AM UTC

slashdave wrote: post #169

Octoth0rpe wrote: post #18

> Krishna also referenced the depreciation of the AI chips inside data centers as another factor: "You've got to use it all in five years because at that point, you've got to throw it away and refill it," he said This doesn't seem correct to me, or at least is built on several shaky assumptions. One would have to 'refill' your hardware if: - AI accelerator cards all start dying around the 5 year mark, which is possib…

5 years is long, actually. This is not a GPU thing. It's standard for server hardware.

Post by mrguyorama » Wed, Dec 03, 2025, 12:44 AM UTC

jamesbelchamber wrote: post #72

myaccountonhn wrote: post #17

> In an October letter to the White House's Office of Science and Technology Policy, OpenAI CEO Sam Altman recommended that the US add 100 gigawatts in energy capacity every year. > Krishna also referenced the depreciation of the AI chips inside data centers as another factor: "You've got to use it all in five years because at that point, you've got to throw it away and refill it," he said. And people think the clima…

If we moron our way to large-scale nuclear and renewable energy rollout however..

Post by kerabatsos » Wed, Dec 03, 2025, 12:45 AM UTC

1vuio0pswjnm7 wrote: post #176

One thing we saw with the dot-com bust is how certain individuals were able to cash in on the failures, e.g., low cost hardware, domain names, etc. (NB. prices may exceed $2) Perhaps people are already thinking about they can cash in on the floor space and HVAC systems that will be left in the wake of failed "AI" hype