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

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

#891

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Were Xerox, Dec, or Apple burning investor money by the billions of dollars?

Xerox is clearly crushing it in 2025... /s

I'm typing this comment from an Apple MacBook, whose interface is a direct result of Xerox PARC allowing Steve Jobs to view the Alto. Xerox was extremely innovative at that time, and with the right leadership, could have become #1 in personal computing.

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

#892

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

There is a way of viewing the whole thing as a ruse to fast-track power generation through permitting.

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

#893

Despite the flashy title that's the first "sober" analysis from a CEO I read about the technology. While not even really news, it's also worth mentioning that the energy requirements are impossible to fulfill Also now using ChatGPT intensely since months for all kinds of tasks and having tried Claude etc. None of this is on par with a human. The code snippets are straight out of Stackoverflow...

Your assessment of Claude simply isn’t true. Or Stackoverflow is really good. I’m producing multiple projects per week that are weeks of work each.

I'll do one better: I poop every day in the water closet!

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

#894

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The hdd being dead will surely come as a surprise to the couple of 12TB rusties spinning joyously in my case right now.

One family down the street from me still drives a Saturn! Yet no one is going to say "Saturn isn't dead!".

Nope. It is like - suddenly every truck everywhere is Saturn. The unit count may be lower but the total tonnage moved grows. While HDD shipments have fallen fourfold counted in units, if you check total exabytes delivered you will see they are shipping a lot.

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

#895
post #120

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Well said. I would add that corporations exist because we choose to let them, to let investors pool capital and limit risk, and in exchange society should benefit, and if it doesn't we should rearrange that deal.

You know, we created the US government as an expression of the fundamental rights of man, with the idea that the government would provide for the common welfare and preserve these rights. In rebellion against a king who seemed to want to exploit us and felt that his being king made him the source of the rights we had. Maybe we need to re-think the relationship with corporations the same way? Re-structure so that they…

Maybe!! :D

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

#896

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The math here is mixing categories. The token calculation for a single 1-GW datacenter is fine, but then it gets compared to the entire industry’s projected $8T capex, which makes the conclusion meaningless. It’s like taking the annual revenue of one factory and using it to argue that an entire global build-out can’t be profitable. On top of that, the revenue estimate uses retail GPT-5.1 pricing, which is the absolut…

> but then it gets compared to the entire industry’s projected $8T capex, which makes the conclusion meaningless. Aren't they comparing annual revenue to the annual interest you might have to pay on $8T? Which the original article estimates at $800B. That seems consistent.

But it's only for one datacenter...

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

#898

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I don't want to defend musk in any way but I think you are making a mistake there using him as an example because what boosted him quite a lot is that he actually delivered what he claimed. Always late but still earlier than anybody was guesstimating. And now he is completely spiraling but its a lot harder to lose a billion than to gain one so he persists and even gets richer. Plus his "fanatical" followers are poor.…

Sounds a lot like "I'm not racist but". There's a website dedicated to all of his bs https://elonmusk.today He is the definition of a cult. Collects money from fanatical followers who will praise every word he says, never delivers, "oh next year guys, for sure, wanna buy a not a flamethrower, while you are at it?". Not to mention what once were laughable conspiracy theories about him turned out to be true(such that e…

I am just saying that he is a bad example because he is a different beast from the run of the mill corporate potemkin-ism.

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

#899
post #278

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Honestly I'm not even sure what IBM does these days. Seems like one company that has slowly been dying for decades. but when I look at their stock, its at all time highs lol no idea

I can think of nothing more peak HN than criticizing a company worth $282 Billion with $6 billion in profit (for startup kids that means they have infinite runway and then some) that has existed for over 100 years with "I'm not even sure what they do these days". I mean the problem could be with IBM... what a loser company!

I think you're hallucinating this scenario. There is no contradiction with a company making money and someone not understanding what they do.

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

#900

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I would any day take chatGPT/Claude over an IBM consultant. I worked at IBM.

I'd rather be slapped in the face than kicked by a horse, but that doesn't mean either is a good thing

Precisely.
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