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[–] 14 points 4 months ago (2 children)

Goes further up the pike than that. The phrase is "in a gold rush, sell picks and shovels". The real shovel seller is NVIDIA, with their graphics chips.

Really, this is just an extension of the graphics chip boom crypto started. A lot of "mining" server farms transitioned smoothly into renting server time for AI training. It's always been the same bubble: overproduction of graphics cards.

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  • [–] 4 points 4 months ago

    I get your point, and mostly agree, but the companies developing closed models are sometimes selling data center services to the real miners - the SV startups that are building products with AI, who are burning a ton of money on tokens. The data centers are making a profit, and will mostly be fine when the bubble pops. So Nvidia is clearly a shovel seller, and SV startups are clearly miners, but the analogy starts to break down when you look at Google, MS, etc.

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