@jwcph es, I published my first AI article saying this "new wine, old bags" in 2024, I guess..

"The mistake that every investor, commentator, analyst and member of the media makes about NVIDIA is believing that its sales are an expression of demand for AI compute, when it’s really more of a statement about the availability of debt from banks and private credit. "

"Generative AI is not a functional industry, and once the money works that out, everything burns." #genAI

Oh-oh.
"* The market for AI compute is very, very small. ... most of which was either OpenAI (via Microsoft) or NVIDIA), there doesn’t appear to be an AI compute market, outside of serving these two companies."
"* The market for AI compute is not actually growing. In the last two years, no new major consumers of AI compute have emerged."

"None of the current stack of AI companies can survive on their own, meaning that the venture capital industry is holding them up. If even one of these companies falters and dies, the entire narrative will die. If that happens, it will be harder for AI companies to raise, and even harder to sell an AI company to someone else."

"Analysts do not appear to have noticed a lack of revenue from an apparent deal for 40% of the world’s RAM! Oh well! Pobody’s nerfect!"

#RAM #DRAM #AI #KI #Shortage

Same applies for #AI
"But the real problem is that analysts do not…well…analyze, not, at least, if it goes against the market consensus. That’s why Goldman Sachs and JP Morgan and Futurum and Gartner and Forrester and McKinsey and Morgan Stanley all said that the metaverse was inevitable — because they do not actually care about the underlying business itself, just its ability to grow on paper. "

"Reality — such as whether there’s any revenue in AI, or whether it’s a good idea that Meta is spending over $70 billion this year on capital expenditures on a product that has generated no revenue (and please, fucking spare me the bullshit around “Meta’s AI ads play,” that whole story is nonsense) — doesn’t matter to analysts, because stocks are thoroughly, inextricably enshittified, and analysts don’t even realize it’s happening."

"By letting neoliberalism and the scourge of the free markets rule, modern society created the conditions for what I call The Enshittifinancial Crisis — the place at which my friend Cory Doctorow’s Enshittification Theory meets my own Rot Economy Thesis in a fourth stage of Enshittification."

https://www.wheresyoured.at/the-rot-economy/

"We are watching one of the greatest wastes of money in history, all as people are told that there “just isn’t the money” to build things like housing, or provide Americans with universal healthcare, or better schools, or create the means for the average person to accumulate wealth. The money does exist, it just exists for those who want to gamble"

"The Enshittifinancial Crisis" What a great and long read.
#AI #KI #enshitification #steal
"We have now entered Enshittification Stage 4, where businesses turn on shareholders." @pluralistic

"OpenAI told me opex keep eating his revenues, so I asked how many rounds of private equity he has burned and he said he just goes to the market and gets new equity afterwards so I said it sounds like he's just feeding equity to opex and then Sam Altman started crying"

https://www.wheresyoured.at/the-enshittifinancial-crisis/