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Groq investor sounds alarm on data centers

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21–30 of 75 posts

Re: Groq investor sounds alarm on data centers

#21
post #5

If/when the AI bubble pops and we're left with hundreds of underutilized datacenters, I think this could be good for hosting customers by driving prices down across the board. Maybe it will make self-hosting even more cheaper than public clouds.

I think it will also allow later down the board for more competition down the line for the hardware 3-5 years down the line.

But I don't really think that focusing on GPU market is gonna work as I don't really see much reason to cater to GPU intensive workloads unless you are affiliated with AI (for most part, some GPU compute is good but datacenters shouldn't really invest so much in GPU compute)

I feel like I am more optimistic about buying stuff (preferably compute) 3-5 years down the board when things might become cheap in my opinion

But this is still a very long time. On one hand I want Ai bubble to burst asap to lessen the impacts of financial crisis but on the other I really think about the financial crisis and think if there are any ways to mitigate the economy's loss so that it doesn't become 2008 crisis

But reality to me feels as if the chances of Bubble popping up is inevitable, the only question is if we can do anything to lessen the strain on the average person all around the world. I think America will be impacted the most but I wonder how geo-politically this might impact other countries as compared to the 2008 crisis.

I don't really think the american govt. is doing anything to lessen the strain the bubble can cause tho, perhaps even promoting things like stargate/AI bubble itself.

It's just sad for 3-4 years. Lets hope economy gets better and more reasonable than AI hype

Re: Groq investor sounds alarm on data centers

#22
post #17
post #5

If/when the AI bubble pops and we're left with hundreds of underutilized datacenters, I think this could be good for hosting customers by driving prices down across the board. Maybe it will make self-hosting even more cheaper than public clouds.

Don't these data centers have pretty elaborate cooling setups that use large volumes of water? So they're sitting on real estate with access to massive amounts of water, electricity, and high bandwidth network connections. Seems like that combination of resources could be useful for a lot of other things beyond just data centers. Like you could probably run desalination plants, large scale hydroponic farms, semicondu…

Semiconductor manufacturing might make sense here but I also don't think it might not simply because it would require probably a lot of expertise and knowledge and complex machinery with experience in this industry which I assume would be very hard to gather even for these datacenters.

I don't see any reasonable path moving forward for these datacenters for the amount of money that they have invested.

Re: Groq investor sounds alarm on data centers

#23

They are building too many steam engines. It's a bubble that's going to pop and leave investors empty handed. There are only so many mines to pump water out of, mills to turn, textile machines to crank. And those industries have jumped on a bandwagon that they don't understand, and most will soon mostly revert to good old English laborers. His Majesty's subjects are starting to see the terrible environmental effects…

> They are building too many steam engines. It's a bubble that's going to pop and leave investors empty handed. What a great analogy. People building too many steam engines was one of the main factors that lead to the first world war.

Well over a century after the commercialization of the Newcomen / Watt steam engines.

Re: Groq investor sounds alarm on data centers

#25
post #5

If/when the AI bubble pops and we're left with hundreds of underutilized datacenters, I think this could be good for hosting customers by driving prices down across the board. Maybe it will make self-hosting even more cheaper than public clouds.

I feel the same way... Posted this yesterday:

After "AI": Anticipating a post-LLM science and technology revolution (evalapply.org)

  2 points by adityaathalye 1 day ago | 8 comments
https://news.ycombinator.com/item?id=46419416

https://www.evalapply.org/posts/after-ai/index.html

> I, for one, welcome the coming age of the post-LLM-datacenter-overinvestment-bust-fueled backyard GPU supercomputer revolution.

Re: Groq investor sounds alarm on data centers

#26

Axios hijacks the back button. The TLDR is: we’re building too much speculative capacity and the “if we build it, they will come” assumption will be proven wrong.

Sorry, what do you mean by this? Back button seems to work normally for me.

Re: Groq investor sounds alarm on data centers

#27
post #17
post #5

If/when the AI bubble pops and we're left with hundreds of underutilized datacenters, I think this could be good for hosting customers by driving prices down across the board. Maybe it will make self-hosting even more cheaper than public clouds.

Don't these data centers have pretty elaborate cooling setups that use large volumes of water? So they're sitting on real estate with access to massive amounts of water, electricity, and high bandwidth network connections. Seems like that combination of resources could be useful for a lot of other things beyond just data centers. Like you could probably run desalination plants, large scale hydroponic farms, semicondu…

> Don't these data centers have pretty elaborate cooling setups that use large volumes of water?

Depending on where, and (more importantly) when you last read about this, there's been some developments. The original book that started this had a unit conversion error, and the reported numbers were off by about 4500x what the true numbers are (author claimed 1000 times more water than an entire city consumption, while in reality it was estimated at ~22% of that usage).

The problem is that we're living in the era of rage reporting, and corrections rarely get the same coverage as the initial shock claim.

On top of this, DCs don't make water "disappear", in the same way farming doesn't make it disappear. It re-enters the cycle via evaporation. (also, on the topic of farming, don't look up how much water it takes to grow nuts or avocados. That's an unpopular topic, apparently)

And thirdly, DCs use evaporative cooling because it's more efficient. They could, if push came to shove, not use that. And they do, when placed in areas without adequate water supply, use regular cooling.

Re: Groq investor sounds alarm on data centers

#28
Many of the crazy things we see happening today come from the same root problem: the wealth of humanity has increasingly been funneled into the hands of a few. These may be mostly companies rather than individuals, but they are a proxy for a relatively small few people.

This glut of finances leaves those few with a problem: what to do with it? And since accumulation of wealth is the ultimate goal, FOMO encourages increasingly foolish decisions (or at least unsustainable ones).

The housing crisis is one of the outcomes. This AI bubble is another. I'm sure if we look around, we can find other examples.

If resources were more evenly distributed, we would see different regions and peoples doing more varied things which would be appropriate for their needs.

Re: Groq investor sounds alarm on data centers

#30
2026 is going to be about going all in on automating software development. This is where the money is currently at as software developers need compute and what could justify all the data centers being built. It is much harder to convert students with limited money or people who don't care about accuracy or the highest end models as much in a lot of other fields. The thing most people even got excited about by the end of this year is obviously Claude Code. If they can solve software development the bubble may take longer than expected to burst.
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