on the point of depreciation. would a hyperscaler be able to make a profitable return on a per GPU basis before they’ve maxed out its use?
genuine question not a rhetorical.
LLMs ingest tokens as input. It is a core component of natural language processing. When entering a query into an LLM the text will be parsed as tokens.
I don’t know if the investing is inherently problematic. I do believe that the current situation is the culmination of many intersecting societal issues.
I’m no expert so take what I say with a grain of salt.
LLMs are prohibitively expensive to run.
If I wanted to make a basic rollerball pen, the cost would be high because I would have to gather the resources just to make a single unit. Mass manufacturing drops the price considerably to make it affordable for me to buy a pen.
But tokens aren’t the same as a factory line. If it’s $1 for me to use an LLM then it’s $100 for 100 people. It scales poorly.
LLM availability over cloud infrastructure requires resources that are expensive to build and depreciate quickly to the point that ROI is untenable (ie. Nvidia’s GPUs).
Now imagine a stock market that hinges around a handful of companies that are involved in that infrastructure component (eg. SK hynix). If many retail investors have dumped their savings into those stocks which can’t provide an expected return then the value of people’s savings will inevitably fluctuate on the whims of the AI industry.
You can imagine what will happen the next time a Chinese company releases a free and efficient LLM that can run on an 8GB RAM personal laptop. The panic selling will reverberate through the markets and a lot of people’s savings will evaporate overnight.
they have the same problems we see in other advanced economies:
They do have well known global industries but workers generally-speaking aren’t paid enough / have limited free time outside of their work. To add more pressure I believe the government increased the pension which is typically paid by the working population who are already financially stretched as it is.
They’re on track for destabilisation in the next 20-30 years.
i presume it means their economy will crash sooner than USA’s.
I don’t live in the US but it must be hard seeing that there are groups that are anti-vaccines who will make those decisions for their children who inevitably will get sick, and those who are sensible have the full knowledge that this was easily avoidable because prior to vaccinations there was widespread death.
Also not uniquely a US problem but clearly at the forefront of online media.