More so I meant to think of oil, copper and now silver. All follow demand for the price. All have had varying prices at different times. Compute should not really be that different.
But yes. Cisco's value dropped when there was not same amount to spend on networking gear. Nvidia's value will drop as there is not same amount of spend on their gear.
Other impacted players in actual economic downturn could be Amazon with AWS, MS with Azure. And even more so those now betting on AI computing. At least general purpose computing can run web servers.
Both companies bought a set of taxis in the past. Presumably at the same time if we want this comparison to be easy to understand.
If company A still has debt from that, company B has that much debt plus more debt from buying a new set of taxis.
Refreshing your equipment more often means that you're spending more per year on equipment. If you do it too often, then even if the new equipment is better you lose money overall.
If company B wants to undercut company A, their advantage from better equipment has to overcome the cost of switching.
> They both refresh their equipment at the same rate.
I wish you'd said that upfront. Especially because the comment you replied to was talking about replacing at different rates.
So your version, if company A and B are refreshing at the same rate, then that means six months before B's refresh company A had the newer taxis. You implied they were charging similar amounts at that point, so company A was making bigger profits, and had been making bigger profits for a significant time. So when company B is able to cut prices 5%, company A can survive just fine. They don't need to rush into a premature upgrade that costs a ton of money, they can upgrade on their normal schedule.
TL;DR: six months ago company B was "no longer competitive" and they survived. The companies are taking turns having the best tech. It's fine.
You can sell the old, less efficient GPUs to folks who will be running them with markedly lower duty cycles (so, less emphasis on direct operational costs), e.g. for on-prem inference or even just typical workstation/consumer use. It ends up being a win-win trade.
Building a new data center and getting power takes years to double your capacity. Swapping out out a rack that is twice as fast takes very little time in comparison.
Depends at the rate of growth of the hardware. If your data center is full and fully booked, and hardware is doubling in speed every year it's cheaper to switch it out every couple of years.
Property taxes do not directly translate into rent, the % of the tax that is on the land value of the property can't be passed on, because the supply of land is inelastic.
Yes & no. Higher costs can obviously be passed onto consumers, but higher taxes make things a less attractive investment, too. The higher your costs regardless of whether a unit is occupied or not, the less interesting it is an an investment.
If we use outsourcing as proxy for what jobs will move to AI first, management jobs will be the last to be replaced.
Managing is about building relationships to coordinate and prioritize work and even though LLMs have excellent soft skills, they can't build relationships.
Spot on. AI might simulate the message perfectly, but it can't hold the social capital and trust required to actually move a team when things get tough.
A full featured mailed client is insanely complicated. If you think mail client is just smtp, you probably think word is just text with some styling and excel is just some cells and functions.
I’m sure, buried somewhere deep in Google systems, are vestiges of mail server code originally written in the 80s. But when people use the name Gmail, they are generally referring to the client facing web app, which does not have any such code.
If it exists, it's probably not at all related to Gmail or only used for testing. I don't think Google reuses a lot of third party code in its first party server software.
reply