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Watching the Generative AI Hype Bubble Deflate
(ash.harvard.edu)
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this post was submitted on 22 Dec 2024
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The article does mention that when the AI bubble is going down, the big players will use the defunct AI infrastructure and add it to their cloud business to get more of the market that way and, in the end, make the line go up.
That's not what the article says.
They're arguing that AI hype is being used as a way of driving customers towards cloud infrastructure over on-prem. Once a company makes that choice, it's very hard to get them to go back.
They're not saying that AI infrastructure specifically can be repurposed, just that in general these companies will get some extra cloud business out of the situation.
AI infrastructure is highly specialized, and much like ASICs for the blockchain nonsense, will be somewhere between "very hard" and "impossible" to repurpose.
Assuming a large decline in demand for AI compute, what would be the use cases for renting out older AI compute hardware on the cloud? Where would the demand come from? Prices would also go down with a decrease in demand.
Relaunching Stadia?
Haha. I believe the AMD Instinct / Nvidia Datacentre GPUs aren't that great for gaming.