fp.

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?

Analemma_•26m ago

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.

dude250711•25m ago

Given the average bubble-prediction accuracy, there might as well be a few centuries before it bursts. Which would give some time.

Twirrim•19m ago

You're somewhat assuming there aren't customers lined up wanting capacity.

tonoto•11m ago

Of course there's still a big demand as there are massive plans on building AI DC all over the planet, but at the same time this are supposedly not an anomaly - wouldn't most customers eventually want newer gear (or reduction in cost)?

segfaultex•10m ago

To what extent is that demand from frontier labs? Purportedly, Anthropic is a significant chunk of GCP rev.

How much runway will the creditors give those labs until they expect a ROI?

The financial underpinning the AI build out make zero sense, but we've seen the market remain irrational for long periods of time.

PeterStuer•10m ago

At what price? I would have unlimited customers lined up selling dollars for 50ct.

neural_thing•15m ago

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.