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?
IBM CEO says there is 'no way' spending on AI data centers will pay off
341–350 of 985 posts
Re: IBM CEO says there is 'no way' spending on AI data centers will pay off
#342Earlier quoted context omitted.
This is literally the view of demis hassabis, Sergey brin, Mario amodei and others. Are you seriously implying they are trolling us?
Re: IBM CEO says there is 'no way' spending on AI data centers will pay off
#343A 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?
I don't know that I'd trust IBM when they are pitching their own stuff. But if anybody has experience with the difficulty of making money off of cutting-edge technology, it's IBM. They were early to AI, early to cloud computing, etc. And yet they failed to capture market share and grow revenues sufficiently in those areas. Cool tech demos (like the Watson Jeopardy) mimic some AI demos today (6-second videos). Yeah, i…
Re: IBM CEO says there is 'no way' spending on AI data centers will pay off
#344Re: IBM CEO says there is 'no way' spending on AI data centers will pay off
#345Earlier quoted context omitted.
Xerox was also famously early with a lot of things but failed to create proper products out of it. Google falls somewhere in the middle. They have great R&D but just can’t make products. It took OpenAI to show them how to do it, and the managed to catch up fast .
"They have great R&D but just can’t make products" Is this just something you repeat without thinking? It seems to be a popular sentiment here on Hacker News, but really makes no sense if you think about it. Products: Search, Gmail, Chrome, Android, Maps, Youtube, Workspace (Drive, Docs, Sheets, Calendar, Meet), Photos, Play Store, Chromebook, Pixel ... not to mention Cloud, Waymo, and Gemini ... So many widely adopt…
Re: IBM CEO says there is 'no way' spending on AI data centers will pay off
#346Earlier 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.
Re: IBM CEO says there is 'no way' spending on AI data centers will pay off
#347Earlier quoted context omitted.
Xerox was also famously early with a lot of things but failed to create proper products out of it. Google falls somewhere in the middle. They have great R&D but just can’t make products. It took OpenAI to show them how to do it, and the managed to catch up fast .
"They have great R&D but just can’t make products" Is this just something you repeat without thinking? It seems to be a popular sentiment here on Hacker News, but really makes no sense if you think about it. Products: Search, Gmail, Chrome, Android, Maps, Youtube, Workspace (Drive, Docs, Sheets, Calendar, Meet), Photos, Play Store, Chromebook, Pixel ... not to mention Cloud, Waymo, and Gemini ... So many widely adopt…
A phrasing I've heard is "Google regularly kills billion-dollar businesses because that doesn't move the needle compared to an extra 1% of revenue on ads."
And, to be super pedantic about it, Android and YouTube were not products that Google built but acquired.
Re: IBM CEO says there is 'no way' spending on AI data centers will pay off
#348Re: IBM CEO says there is 'no way' spending on AI data centers will pay off
#349Earlier quoted context omitted.
I don't know that I'd trust IBM when they are pitching their own stuff. But if anybody has experience with the difficulty of making money off of cutting-edge technology, it's IBM. They were early to AI, early to cloud computing, etc. And yet they failed to capture market share and grow revenues sufficiently in those areas. Cool tech demos (like the Watson Jeopardy) mimic some AI demos today (6-second videos). Yeah, i…
Neither cloud computing nor AI are good long term businesses. Yes, there's money to be made in the short term but only because there's more demand than there is supply for high-end chips and bleeding edge AI models. Once supply chains catch up and the open models get good enough to do everything we need them for, everyone will be able to afford to compute on prem. It could be well over a decade before that happens bu…
Once we have sufficient VRAM and speed, we're going to fly - not run - to a whole new class of applications. Things that just don't work in the cloud for one reason or another.
- The true power of a "World Model" like Genie 2 will never happen with latency. That will have to run locally. We want local AI game engines [1] we can step into like holodecks.
- Nobody is going to want to call OpenAI or Grok with personal matters. People want a local AI "girlfriend" or whatever. That shit needs to stay private for people.
- Image and video gen is a never ending cycle of "Our Content Filters Have Detected Harmful Prompts". You can't make totally safe for work images or videos of kids, men in atypical roles (men with their children = abuse!), women in atypical roles (woman in danger = abuse!), LGBT relationships, world leaders, celebs, popular IPs, etc. Everyone I interact with constantly brings these issues up.
- Robots will have to be local. You can't solve 6+DOF, dance routines, cutting food, etc. with 500ms latency.
- The RIAA is going door to door taking down each major music AI service. Suno just recently had two Billboard chart-topping songs? Congrats - now the RIAA lawyers have sued them and reached a settlement. Suno now won't let you download the music you create. They're going to remove the existing models and replace them with "officially licensed" musicians like Katy Perry® and Travis Scott™. You won't retain rights to anything you mix. This totally sucks and music models need to be 100% local and outside of their reach.
[1] Also, you have to see this mind-blowing interactive browser demo from 2022. It still makes my jaw drop: https://madebyoll.in/posts/game_emulation_via_dnn/
Re: IBM CEO says there is 'no way' spending on AI data centers will pay off
#350Earlier quoted context omitted.
It depends on how much profit you are making. As long as you can still be profitable on the old hardware you don't have to upgrade.
That's the thing though: a competitor with better power efficiency can undercut you and take your customers