Because it’s currently being subsidized. Currently as an industry it’s making negative money, it exists because it’s managed to convince investors that there is a future in AI, a nice shiny profitable one. Eventually the investors are going to start asking when this profit is going to start turning up and of course the answer is probably, never. It’s unclear how this technology could ever be profitable, it requires something like 40% of global GPU production capacity, some of the largest data centers ever constructed, the output of about two average nuclear power stations in terms of electricity, and a Niagara falls worth the water, just for basic operations. It isn’t long-term sustainable.
So either they come up with a more efficient system which they haven’t yet done. All they provide a second Earth worth of resources. Feeling that, they’re going to have to raise prices to unsustainable levels just to meet their basic operating costs.
Because it’s currently being subsidized. Currently as an industry it’s making negative money, it exists because it’s managed to convince investors that there is a future in AI, a nice shiny profitable one. Eventually the investors are going to start asking when this profit is going to start turning up and of course the answer is probably, never. It’s unclear how this technology could ever be profitable, it requires something like 40% of global GPU production capacity, some of the largest data centers ever constructed, the output of about two average nuclear power stations in terms of electricity, and a Niagara falls worth the water, just for basic operations. It isn’t long-term sustainable.
So either they come up with a more efficient system which they haven’t yet done. All they provide a second Earth worth of resources. Feeling that, they’re going to have to raise prices to unsustainable levels just to meet their basic operating costs.