this post was submitted on 01 Dec 2025
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i wonder if when AI bubble bursts the serverhalls will shut down and the financial dependency on fossil fuels will go past a tipping point (piefed.social)
submitted 1 week ago by bluemoon@piefed.social to c/climate@slrpnk.net
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[–] bluemoon@piefed.social 4 points 1 week ago (1 children)

seems to me like the impossibility of corporativism is breaching at it's seams and "AI" is a patching

from what you're writing

[–] originalucifer@moist.catsweat.com 4 points 1 week ago (1 children)

all i can see are human processes being replaced by more reliable automated ones, and the compute required or provided for those isnt going to just disappear because some us-euro-centric valuation bubble.

its a service domain available on every continent and its being successfully and financially beneficially implemented in thousands of ways most people just dont understand.

there is money being made, but the false valuation is masking the reality.

is it over valued in most sectors? fuck yeah. is use of llms/ai or the building of data centers around the globe going to stop anytime in the next few decades? fuck no.

so will there be a financial bubble burst where lots of ai players lose out big time? maybe. will that affect the use of ai/llms in absolutely any capacity? fuck no. it would keep chuggin along with new owners.

[–] rbos@lemmy.ca 4 points 1 week ago* (last edited 1 week ago) (1 children)

The prices will eventually get jacked up once the market penetration is judged sufficient. Likely they'll charge as much money as they can, so it'll end up being just a hair under what a human would cost, maybe more of the switching cost is high.

I smell a trap.

[–] gid@piefed.blahaj.zone 7 points 1 week ago (1 children)

This is the intention. David Rosenthal recently wrote a blog piece about it. It goes quite deep into the economics but this is what I understand from the piece:

  • Pricing for AI services is modelled after "the drug-dealer's algorithm" (the first go is free)
  • Specifically for enterprise usage, the model assumes that enterprises will find that using the service gives enough value to cover the subsidised cost of the service through the lock-in period.
  • The assumed depreciation of hardware used in AI services is wrong, and the bubble will burst soon. Providers will have to raise prices significantly to remain solvent.
[–] rbos@lemmy.ca 4 points 1 week ago

Good piece.