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Mmastodon TechnologySemiconductors first seen 1 d ago, last 1 h ago, peak #11

AI investors face astronomically huge profit demands, critics warn

Original: The scale of profits required to meet the expectations of investors in # LLM -based # GenAISlop within to 5-6 year lifes

Commentary is highlighting the enormous profits that would be needed to satisfy investor expectations around LLM-based generative AI, given that current datacentre technology has a lifespan of roughly five to six years. The argument holds that the six main hyperscalers heavily invested in generative AI face a financial bar so high it may be unsustainable, fuelling scepticism about the economics of the AI buildout.

Why now: Growing debate over whether massive AI infrastructure spending can ever generate returns matching investor expectations.

hyperscalersOpenAIMicrosoftGoogleAmazon

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