IMHO: one of the biggest dangers of data centers that are understated at IMO is the financial risk. Because they’re essentially just materials in a round-tripping scam that has the potential to take an entire state pension fund with it. Because, not only are they being financed with borrowed money in a round-tripping scam, which is already bad. But on top of that, this money comes from private credit, which oftentimes has none of the safeguards normal credit has. And what happens is when multiple private credit entities lose liquidity at the same time, because they have taken too much risk in the AI bubble, then the entire system can fall, like we have seen in 2008. Because that’s when the banking sector had as little oversight as private credit does today. IMO, after the bubble pops, the data centers and their immediate vicinity will look like Detroit and the American Rust Belt. The neoliberals weren’t lying, the free market really has taken care of these areas.
a round-tripping scam that has the potential to take an entire state pension fund with it.
This.
What is the best example how much money is 6 trillion dollars of profit per year?
Globally we spend about $1 trillion on consumer electronics per year. And that’s spending not profit. AI would need to somehow allow them to sell every phone, laptop, refrigerator, all for 6x more - and without increasing the production cost.
All while not providing a physical item to the buyers
It’s 18 times what the entire weapons manufacturers profit is yearly. If you’re conservative (so if you lie or low ball on purpose) the US defense budget is a trillion each year (it’s more) then that’s 6 times the entire yearly defense spending budget.
“if you lie” you refer to the worlds largest arms dealer as “US defense”
One quarter of the entire US economy.
Imagine buying every orchard in the world and trying to fund it by setting up a lemonade stand.
But lemonade uses lemons not apples…?
Wait til you find out where lemons grow…
no way
