The everything bubble?

This article discusses the current state of data centers related to artificial intelligence, highlighting significant issues such as power shortages that leave many GPUs idle. Microsoft CEO Satya Nadella noted that a lack of available data center infrastructures, or 'warm shells,' is a major challenge. Despite this, investments in data centers continue to increase, leading to comparisons with past market bubbles, particularly in 1999 and 2008. Investor Paul Kedrosky warns that the combination of speculative real estate, loose credit, and a compelling technology narrative could create a precarious situation for markets. He notes the potential for over-investing in power plants to service idle GPUs, which could become stranded assets due to misforecasting AI demand. As the market stands, there is debate about whether the anticipated returns from AI will justify the ongoing investments in data centers. Overall, the article provides a sobering perspective on the infrastructure frenzy amid changing market conditions.

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