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

Post by zozbot234 » Wed, Dec 03, 2025, 12:45 AM UTC

carlCarlCarlCar wrote: post #32

rlpb wrote: post #16

Earlier quoted context omitted.

> those gpu's will be obsolete in 5 years, but will the newer be enough better as to be worth replacing them is an open question Doesn't one follow from the other? If newer GPUs aren't worth an upgrade, then surely the old ones aren't obsolete by definition.

MTBF for data center hardware is short; DCs breeze through GPUs compared to even the hardest of hardcore gamers. And there is the whole FOMO effect to business purchases; decision makers will worry their models won't be as fast. Obsolete doesn't mean the reductive notion you have in mind, where theoretically it can still push pixels. Physics will burn them up, and "line go up" will drive demand to replace them.

Post by HDThoreaun » Wed, Dec 03, 2025, 12:46 AM UTC

skeeter2020 wrote: post #33

The interesting macro view on what's happening is to compare a mature data center operation (specifically a commoditized one) with the utility business. The margins here, and in similar industries with big infra build-out costs (ex: rail) are quite small. Historically the businesses have not done well; I can't really imagine what happens when tech companies who've only ever known huge, juicy margins experience low si…

Post by jsheard » Wed, Dec 03, 2025, 12:49 AM UTC

blibble wrote: post #181

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

I'm looking forward to buying my own slightly used 5 million square ft data centre in Texas for $1

Post by intrasight » Wed, Dec 03, 2025, 12:50 AM UTC

ryandrake wrote: post #95

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…

LOL, maybe Sam Altman can fund those power plants. Let me guess: He'd rather the public pay for it, and for him to benefit/profit from the increased capacity.

Post by zozbot234 » Wed, Dec 03, 2025, 12:51 AM UTC

georgeecollins wrote: post #12

kenjackson wrote: post #6

I don't understand the math about how we compute $80b for a gigawatt datacenter. What's the costs in that $80b? I literally don't understand how to get to that number -- I'm not questioning its validity. What percent is power consumption, versus land cost, versus building and infrastructure, versus GPU, versus people, etc...

First, I think it's $80b per 100 GW datacenter. The way you figure that out is a GPU costs $x and consumes y power. The $x is pretty well known, for example an H100 costs $25-30k and uses 350-700 watts (that's from Gemini and I didn't check my work). You add an infrastructure (i) cost to the GPU cost, but that should be pretty small, like 10% or less. So a 1 gigawatt data center uses n chips, where y n = 1 GW. It cos…