https://www.smartcompany.com.au/startupsmart/firmus-raises-3...
https://www.smartcompany.com.au/startupsmart/firmus-raises-3...
What's worse is that OpenAI and the other AI companies are all intertwined. The chipmakers are invested in the datacenter operators are invested in the software guys. When the bubble implodes - and it will implode - the good will go down with the bad, and that's what makes a financial crash a true crash.
https://www.nbcnews.com/business/economy/openai-nvidia-amd-d...
Performative actions to drive up valuation and try and attract more investors absolutely feels bubbly to me.
1. Discounting products that are not only currently operating at a loss but are priced well below actual resourcing required to produce.
The fair criticism of the infra $ is where the non-VC non-bank-loan cash stream is, but there could be a lot of B2B deals and e.g. Meta, TikTok and other behemoths do tend to make plenty of money and pay their bills, and have extreme thirst for more AI capacity.
Take Oracle for example (as a whole, not just OCI) - tons of customers who are paying for AI-enhanced enterprise products.
It's still the early days, as the cost of creating software continues to approach zero the rules will change in ways which are hard to predict. The effect this will have on other white collar industries is even more challenging to reason about.
NVIDIA's stock may eventually get decimated (but the company itself will be fine, they have a relatively low employee account and insane margins), the Coreweaves of the world are definitely leveraged plays on compute and may indeed end up being DotCom style busts, but a key difference is that the driving forces at the very top - the Microsofts and Amazons of the world - have huge free cash flows, real compute demand growth beyond the AI space, and fortress balance sheets.
There is a commonly held belief that there is a level of compute (vaguely referred to as AGI) that would be extremely valuable and those companies may continue to rationally fund AI research as R&D though if the VC and loan funding dries up there will probably be serious fights with the accounting departments. It is good to point out that companies with huge war chests do seem poised to continue investing in this even if VC/etc dries up due to the lack of end-user profitability - it'll be an interesting shift but probably not as disastrous as the dot-com bubble burst was.
"continues " is inaccurate. The cost of creating software is nowhere near approaching zero
In Sam's dreams, perhaps.
Or maybe not enough money soon enough, and at this scale that could be more of a disaster than it had to be.
So far it's not looking like a business boom much at all compared to the massive investment boom which is undeniable, and that's where a good amount of remaining prosperity is emanating from.
If you were a financial person wouldn't you figure there were a lot bigger bonuses by getting involved with the amount of cash flow being invested rather than the amount resulting from profits being made in AI right now?
How much is dumb money, though? That's the real question which remains highly relevant post dotcom bust.
It wouldn't surprise me if much of the $1tn most doesn't turn up and the bubble bursts before 1/10th or that becomes real.
There's nVidia that we know (primarily graphics cards) and more like an investment firm "nVidia" these days. The stocks have grown so much that they are trying to turn their fortunes around (to sustain growth) by investing everywhere.
nVidia has invested in so many companies in the ecosystem and beyond.
If this means that compute is considerably cheaper for OpenAI, it's a win for them too. But that remains to be seen.
I can only imagine what could grow out of an oversupply of rack-space and electrical power generation, post-crash.
In population terms, Tasmania has 4.5 sheep per person, whereas Victoria has 1.9 sheep per person. NSW 0.28, SA 5.2, WA 3.3, QLD 0.4
[1] https://www.ga.gov.au/scientific-topics/national-location-in... [2] https://www.abs.gov.au/statistics/people/population/national... [3] https://www.wool.com/market-intelligence/sheep-numbers-by-st...
* Population numbers are one head per person, so actual numbers may vary for Tasmania ;-)
I better get my maugean skates on...
It's not a bad idea to put data centers here, but we really need a few more links out to the world from here.
kind of like Mississippi but without the tourists part
get it? hahahaha
https://www.clarionledger.com/story/news/2025/06/11/mississi...
i hear people online punch down on mississippi all the time, and often they don't know anything about the state except whatever metric they've heard about from a headline. the rest of america isn't very far behind, and if you think the state of mississippi isn't a product of america as a whole then you are extremely mistaken. without the industrialized north you have no plantation economy and without the civil war you have no "dead last (or in the bottom 5 states) in virtually every possible positive metric."
i grew up there, attended public school all the way through my BA, and then spent significant time as a young adult there. based on the stereotypical assumptions, it might be shocking to the big brains on hacker news that somebody from mississippi is an audience of this website.
Agreed, people usually just say ‘lol MS is full of idiots, they’re bad at school’ instead of taking the time to understand why. It was more isolated than GA and LA (and AL), there was a higher ratio of slaves to freedmen in the antebellum period, the Delta was undeveloped so lots of impoverished people from across the south moved there to try and develop the land, to name a few reasons.
> i grew up there, attended public school all the way through my BA, and then spent significant time as a young adult there. based on the stereotypical assumptions, it might be shocking to somebody on hacker news that somebody on a similar enough intelligence level to be an audience of this website is from mississippi.
I can say that I don’t assume everyone from Mississippi is stupid, but the generalization about Mississippi that you related seems to be more common than it should be. I think a lot of it has to do with a lack of exposure to people from Mississippi or Mississippi itself.
Thanks for taking the time to respond, I appreciate the discussion.
data centers being built but people fighting it. new rezoning in taylor, MS being fought by locals bc they are trying to reclassify agriculture land for heavy industry so they can build an asphalt plant. federal government troops in nearby memphis.
just like anywhere else in america.
And how long has this kind of thing probably been going on?
There’s also plenty more there than sheep and tourists (and not really that many of those)
But the vast majority of Tasmania's power is hydroelectric. Hydro is a much more desirable renewable than solar because it essentially is its own built in battery.
God knows how a datacentre would do down there....