"There's an inherent risk when the timing of the economic value is uncertain,"
"And then I think there are some players who are 'YOLO-ing,' who pull the risk dial too far, and I'm very concerned,"
"The issue isn't the lifetime of the chips - chips keep working for a long time. The issue is new chips come out that are faster and cheaper...and so the value of old chips can go down somewhat,"
AI carries strong long-term economic potential, yet the timing of that economic value remains uncertain. Companies must balance aggressive investment against uncertain near-term payoffs and lag times for building data-center capacity. Competitive pressure and geopolitical rivalry increase incentives to take larger risks, and some firms are taking imprudent, high-risk approaches that could produce poor outcomes. Hardware dynamics also pressure economics: newer chips that are faster and cheaper can reduce the market value of older GPUs even though those older chips still function. Careful risk management and alignment of investment timing with value realization are essential.
Read at TechCrunch
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