Ouch, investment in GPU isn't a one off, you also need to invest newer generations (that naturally comes with a bigger price tag) to attract customers long term. How will this business ever become profitable before the bubble bursts?
Before Tuesday the plan was to get a bailout from their buddies in the White House on "national security" grounds. That became much less viable now that Trump is a lame duck and anti-datacenter ballot measures passed everywhere, which is probably why e.g. CoreWeave is down 20% since the election.
Ouch, investment in GPU isn't a one off, you also need to invest newer generations (that naturally comes with a bigger price tag) to attract customers long term. How will this business ever become profitable before the bubble bursts?
You're somewhat assuming there aren't customers lined up wanting capacity.
Before Tuesday the plan was to get a bailout from their buddies in the White House on "national security" grounds. That became much less viable now that Trump is a lame duck and anti-datacenter ballot measures passed everywhere, which is probably why e.g. CoreWeave is down 20% since the election.
Given the average bubble-prediction accuracy, there might as well be a few centuries before it bursts. Which would give some time.
"UUUAAAAHHHH!!!"
That was the sound of Ed Zitron ghost....
This is a nothingburger. Microsoft declining to renew a deal for 2023 A100s that power Bing because they want newer chips in house.
Oracle can re-rent them at spot at a higher price anyway.
Apparently a lot of market participants are too scared to be able to read today.
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