The entire US economy is currently being propped up by growth in the AI/tech sector. And I am convinced that LLMs are fundamentally incapable of delivering on the promises being made by the AI CEOs. That means there is a massive bubble that will eventually burst, probably taking the whole US economy with it.
Let’s say, for sake of argument, that I am a typical American. I work a job for a wage, but I’m mostly living paycheck to paycheck. I have maybe a little savings, and a retirement account with a little bit in it, but certainly not enough that I can retire anytime in the near future.
To what extent is it possible for someone like me, who doesn’t buy into the AI hype, to insulate themselves from the negative impact of the eventual collapse?
That’s pretty horrific.
It’s also not completely fair, some of that money would have been spent elsewhere without datacenters. Investors still gonna invest.
But what if the net ROI on those data centers is massively below the working average cost of capital… what is stated above is still massively destructive to capital and economic activity
Oh yeah it’s definitely bad in the long run. I’m just saying that it isn’t fair to say that the economy wouldn’t be growing without these new datacenters.