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

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311–320 of 985 posts

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

#311

A decade ago, IBM was spending enormous amounts of money to tell me stuff like "cognitive finance is here" in big screen-hogging ads on nytimes.com. They were advertising Watson, vaporware which no one talks about today. Are they bitter that someone else has actually made the AI hype take off?

Has it really taken off? Where's the economic impact that isn't investor money being burned or data center capex?

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

#312
post #269

Earlier quoted context omitted.

Initial Watson was sort of a mess. But a lot of the Watson-related tech is integrated into a lot of products these days.

Such as? I'm curious because I know a bunch of people who did a lot of Watson-related work and it was all a dead end, but that was 2020-ish timeframe.

IBM did a lot of pretty fragmented and often PR-adjacent work. And getting into some industry-specific (e.g. healthcare) things that didn't really work out. But my understanding is that it's better standardized and embedded in products these days.

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

#313

Earlier quoted context omitted.

Can’t wait for all this cheap ddr5 memory and GPUs

I was looking at my Newegg orders recently. 7/18/2023 - 64GB (2 x 32GB) 288-Pin PC RAM DDR5 6000 (PC5 48000) --> $260. Now, $750+.

I have 4 32gb sticks of DDR5 6400 in my machine.

The RAM in my machine being worth more than the graphics card (7900XTX) was not on my bingo card I can tell you that.

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

#314
post #278

Earlier quoted context omitted.

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

They make business machines, internationally.

Pretty sure they made all their money fighting the paperwork explosion.

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

#315
post #56

Earlier quoted context omitted.

Worse, is that a lot of these people are acting like Moore's law isn't still in effect. People conflate clock speeds on beefy hardware with moore's law, and act like it's dead, when transistor density rises, and cost per transistor continue to fall at rates similar to what they always have. That means the people racing to build out infrastructure today might just be better off parking that money in a low interest acc…

Cost per transistor is increasing. or flat, if you stay on a legacy node. They pretty much squeezed all the cost out of 28nm that can be had, and it’s the cheapest per transistor. “based on the graph presented by Milind Shah from Google at the industry tradeshow IEDM, the cost of 100 million transistors normalized to 28nm is actually flat or even increasing.” https://www.tomshardware.com/tech-industry/manufacturing/c…

Yep. Moore's law ended at or shortly before the 28nm era.

That's the main reason people stopped upgrading their PCs. And it's probably one of the main reasons everybody is hyped about Risc-V and the pi 2040. If Moore's law was still in effect, none of that would be happening.

That may also be a large cause of the failure of Intel.

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

#316

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

you could stuff the racks full of server-rack batteries (lfp now, na-ion maybe in a decade) and monetize the space and the high capacity grid connect

most of the hvac would sit idle tho

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

#317

A decade ago, IBM was spending enormous amounts of money to tell me stuff like "cognitive finance is here" in big screen-hogging ads on nytimes.com. They were advertising Watson, vaporware which no one talks about today. Are they bitter that someone else has actually made the AI hype take off?

Watson X is still a product line sold today to qualified customers :)

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

#318
The second buyer will make truckloads of money, remember the data center and fiber network liquidation of 2001+ - smart investors collected the overcapacity and after a couple of years the money printer worked. This time it will be the same, only the single purpose hardware (LLM specific GPUs) will probably end on a landfill.

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

#319
post #294

Earlier quoted context omitted.

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

In TX? In Russian blogosphere it is a standard staple that Trump is rushing Ukrainian peace deal to be able to move on to the set of mega-projects with Russia - oil/gas in Arctic and data centers in Russian North-West where electricity and cooling is plentiful and cheap.

Oil and Gas in The Arctic I can see, but data centers in Russia... good luck with that.

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

#320
post #318

The second buyer will make truckloads of money, remember the data center and fiber network liquidation of 2001+ - smart investors collected the overcapacity and after a couple of years the money printer worked. This time it will be the same, only the single purpose hardware (LLM specific GPUs) will probably end on a landfill.

Are they LLM specific?
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