Comment by biztos | Hacker News Reader

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Comment by biztos | Hacker News Reader

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In order to not un-build the data centers, they at least have to make more than it costs to operate them, and also not have some attractive liquidation value (the land, maybe).

I could imagine something like “inference is done at home or in China, that’s the price to beat” and it’s not worth keeping all those GPUs cool out in Nevada.

But the parent comment was that one of the bigger costs in these data centers was the interest expense on the borrowed money. A restructuring removes or heavily reduces that amount.

The fiber laid during the dotcom bubble never paid back the investors or lenders, but it's still profitably connecting customers all these years later.

It’s true once built the data center can operate right up to a financed data center value of zero. The investors will loose money but the costs of AI will go down as they do

Yup, that is the real economic benefit of bankruptcy - a reset.

Isn't something like 90% of the fiber laid during the dot com bubble still dark?

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