AI Data Centers (The Insanity Bubble)

[JTH]

An interesting read concerning the profitability of Data Centers.

The author projects that AI data centers built in 2025 will suffer annual depreciation of $40 billion, while generating only $15-20 billion in revenue.
If AI companies charged subscription-level prices similar to Netflix’s (which brings in about $39 billion annually), they’d need billions more users to justify their data center expense, a scenario that seems implausible.

There's a Stunning Financial Problem With AI Data Centers​

 

[nasa1974]

I read an article a while back that said these data centers consume so much power that the electrical rates for homes in the area have increased.

 

[TommyIV]

And so it begins>>

OpenAI Misses Key Revenue, User Targets in High-Stakes Sprint Toward IPO​

The AI delusion is starting to catch up to reality and its worrying some within the company. After OpenAI fueled the AI sector with some $600 billion in future spending commitments, mostly on data-center infrastructure, it is now falling short on its own revenue targets. OpenAI is not a public company yet, so it's able to hide much of damage from the public.