[HN Gopher] The AI Investment Boom
       ___________________________________________________________________
        
       The AI Investment Boom
        
       Author : m-hodges
       Score  : 103 points
       Date   : 2024-10-20 14:56 UTC (8 hours ago)
        
 (HTM) web link (www.apricitas.io)
 (TXT) w3m dump (www.apricitas.io)
        
       | apwell23 wrote:
       | > AI products are used ubiquitously to generate code, text, and
       | images, analyze data, automate tasks, enhance online platforms,
       | and much, much, much more--with usage expected only to increase
       | going forward.
       | 
       | Why does every hype article start with this. Personally my
       | copilot usage has gone down while coding. I tried and tried but
       | it always gets lost and starts spitting out subtle bugs that
       | takes me more time to debug than if i had written it myself.
       | 
       | I always have this feeling of 'this might fail in production in
       | unknown ways' because i might have missed checking the code
       | throughly . I know i am not the only one, my coworkers and
       | friends have expressed similar feelings.
       | 
       | I even tried the new 'chain of thought' model, which for some
       | reason seems to be even worse.
        
         | bongodongobob wrote:
         | Well I have the exact opposite experience. I don't know why
         | people struggle to get good results with llms.
        
           | thuuuomas wrote:
           | Would you feel comfortable pushing generated code to
           | production unaudited?
        
             | bongodongobob wrote:
             | Would you feel comfortable pushing human code to production
             | unaudited?
        
               | candiddevmike wrote:
               | Only on Fridays before a three day weekend.
        
               | dijksterhuis wrote:
               | depends on the human.
               | 
               | but i would never push llm generated code. never.
               | 
               | -
               | 
               | edit to add some substance:
               | 
               | if it's someone who
               | 
               | * does a lot of manual local testing
               | 
               | * adds good unit / integration tests
               | 
               | * writes clear and well documented PRs
               | 
               | * knows the code style, and when to break it
               | 
               | * tests themselves in a staging environment, independent
               | of any QA team or reviews
               | 
               | * monitors the changes after they've gone out
               | 
               | * has repeatedly found things in their own PRs and asked
               | to hold off release to fix them
               | 
               | * is reviewing other people's PRs and spotting things
               | before they go out
               | 
               | yea, sure, i'll release the changes. they're doing the
               | auditing work for me.
               | 
               | they clearly care about the software. and i've seen
               | enough to trust them.
               | 
               | and if they got it wrong, well, shit, they did everything
               | good enough. i'm sure they'll be on the ball when it
               | comes to rolling it back and/or fixing it.
               | 
               | an llm does not do those things. an llm *does not care
               | about your software* and never will.
               | 
               | i'll take people who give a shit any day of the week.
        
               | amonith wrote:
               | I'd say it depends more on "the production" than the
               | human. There are legal means to hold all people
               | accountable for their actions ("Gross neglience" and all
               | that). So you can basically always trust that people will
               | fix what they messed up given the possibility. So if you
               | can afford for the production to be broken (e.g. the
               | downtime will just annoy some people) you might as well
               | allow your team to deploy straight to prod without
               | audits. It's not that rare actually.
        
             | charrondev wrote:
             | For my I have a company subscription for Copilot and I just
             | use the line based autocomplete. It's mildly better than
             | the built in autocomplete. I never have it do more than
             | though and probably wouldn't buy a license for myself.
        
           | hnthrowaway6543 wrote:
           | LLMs are great for simple, common tasks, i.e. CRUD apps,
           | RESTful web endpoints, unit tests, for which there's an
           | enormous amount of examples and not much unique complexity.
           | There's a lot of developers whose day mostly involves these
           | repetitive, simple tasks. There's also a lot of developers
           | who work on things that are a lot more niche and complicated,
           | where LLMs don't provide much help.
        
             | 101008 wrote:
             | Yeah, exactly this. If I ask Cursor to write the serializer
             | for a new Django model, it does it (although sometimes it
             | invents fields that do not exist). It saves me 2 minute.
             | 
             | When I ask him to write a function that should do something
             | much more complex, it usually do something so bad it takes
             | me more time because it confuses me and now I have to back
             | to my original reasoning (after trying to understand what
             | it did).
             | 
             | What I found useful is to ask him to explain me what a
             | function does in a new codebase I am exploring, although I
             | have to be very careful because a lot of time invents or
             | skips steps that are crucial.
        
               | dartos wrote:
               | See, I recently picked up the Ash framework for elixir
               | and it does all that too, but in a declarative, precise
               | language which codegens the implementation in a
               | deterministic way.
               | 
               | It just does the job that cursor does there, but better.
               | 
               | Maybe us programmers should focus on making higher order
               | programming tools instead of black box text generators
               | for existing tools.
        
             | danenania wrote:
             | In my experience this underrates them. They can do pretty
             | complex tasks that go well beyond your examples if prompted
             | correctly.
             | 
             | The real limiting factor is not so much task complexity as
             | the level of abstraction and indirection. If you have code
             | that requires following a long chain of references to
             | understand, LLMs will struggle to work with it.
             | 
             | For similar reasons, they also struggle with:
             | 
             | - generic types
             | 
             | - inheritance hierarchies
             | 
             | - long function call chains
             | 
             | - dependency injection
             | 
             | - deeply nested structures
             | 
             | They're also bad at counting, which can be an issue when
             | dealing with concurrency--i.e. you started 5 operations
             | concurrently at different points in your program and now
             | need to block while waiting for 5 corresponding success or
             | failure messages. Unless your code explicitly uses the
             | number 5 somewhere, an LLM is often going to fail at
             | counting the operations.
             | 
             | All in all, the main question I think in determining how
             | well an LLM can do a task is whether the limiting factor
             | for your task is knowledge or abstraction. If it's
             | knowledge (the intricacies of some arcane OS API, for
             | example), an LLM can do _very_ well with good prompting
             | even on quite large and complex tasks. If it 's
             | abstraction, it's likely to fail in all kinds of seemingly
             | obvious ways.
        
             | apwell23 wrote:
             | > LLMs are great for simple, common tasks, i.e. CRUD apps,
             | RESTful web endpoints
             | 
             | i gave it a yaml and asked it to generate a json call to
             | rest api . It missed a bunch of keys and made up a random
             | new key. I threw out the whole thing and did it with
             | awk/sed.
        
           | amonith wrote:
           | Seriously though, what are you doing? Every single example
           | everywhere throughout the internet that tries to show how
           | good AI is at programming shows so mindbogglingly simplistic
           | examples that it's getting annoying. It sure is a great
           | learning tool when you're trying to do something experimental
           | in a new stack or completely new project, I'll give you that,
           | but once you reach the skill level where someone would hire
           | you to be an X developer (which most developers disagreeing
           | with you are, mid+ developers of some stack X) the thing
           | becomes a barely useful autocomplete. Maybe that's the
           | problem? It's just not a tool for professional developers?
        
             | Viliam1234 wrote:
             | I am happy with the LLMs, but I only tried them on small
             | projects done at my free time.
             | 
             | As a back end developer I am not familiar with the latest
             | trends in JavaScript and CSS, and frankly I do not want to
             | spend my time studying these. A LLM can generate an
             | interactive web game based on my description. I review the
             | code, it is usually okay, sometimes I suggest an
             | improvement. I _could_ have done all of that -- but it
             | would take me a week, and the LLM does it in seconds. So it
             | is a difference between a hobby project done or not done.
             | 
             | I also tried a LLM at work, not to code, but to explain
             | some complex topics that were new to me. Once it provided a
             | great high-level description that was very useful. And once
             | it provided a great explanation... which was a total lie,
             | as I found out when I tried to do a hello-world example. I
             | still think the 50% success rate is great, as long as you
             | can quickly verify it.
             | 
             | Shortly, we need to know the strengths and the weaknesses,
             | and use the LLMs accordingly. Too much trust will get you
             | burned. But properly used, they can save a lot of time.
        
             | FeepingCreature wrote:
             | I mean, let me just throw in an example here: I am
             | currently working on https://guesspage.github.io , which is
             | basically https://getguesstimate.com but for flowtext
             | instead of a spreadsheet. The site is ... 99.9% Claude
             | Sonnet written. I have literally only been debugging and
             | speccing.
             | 
             | Sonnet can absolutely get very confused and break things.
             | And there were tasks where I had a really hard time getting
             | it to do the right thing, or understand what I wanted. But
             | I need you to understand: Sonnet made this thing for me in
             | _two and a half days_ of part-time prompting. That is
             | probably ten times faster than it would have taken me on my
             | own, especially as I have absolutely no design ability.
             | 
             | Now, is this a big project? No, it's like 2kloc. But I
             | don't think you can call it "simple" exactly. It's
             | potentially useful technology. This sort of "just make this
             | small tool exist for me" is where I see most of the value
             | for AI in the next year. And the definition of "small tool"
             | can stretch surprisingly far.
        
               | hnthrowaway6543 wrote:
               | This _is_ a simple project. Nobody is disputing that
               | GenAI can automate a large chunk of the initial setup
               | work, which dominates the time spent on small projects
               | like this. But 99.999% of professional, paid software
               | development is _not_ working on the basic React
               | infrastructure for a 2,000 loc javascript app.
               | 
               | Also your Google Drive API key is easily discoverable
               | with about 15 seconds of looking at the JS source code --
               | this is something a professional software developer would
               | (hopefully) have picked up without you asking, but an LLM
               | isn't going to tell you that you shouldn't ship the
               | `const API_KEY = ...` code as a file to the client,
               | because you didn't ask.
        
               | FeepingCreature wrote:
               | > This is a simple project.
               | 
               | I mean, it would have taken me a lot longer on my own.
               | Sure it's not a huge project, I agree; I wouldn't call it
               | entirely trivial.
               | 
               | > Also your Google Drive API key is easily discoverable
               | with about 15 seconds of looking at the JS source code
               | 
               | No, I'm aware of that. That's deliberate. There's no way
               | to avoid it for a serverless webapp. (Note that Guesspage
               | is entirely hosted on Github Pages.) All the data stored
               | is public anyways, the key is limited to only have
               | permission to access the stored data, and you still have
               | to log in and grab a token that is only stored in your
               | browser and cannot be accessed from other sites.
               | Literally the only unique thing you can do with it is
               | trigger a login request on your own site that looks like
               | it comes from Guesspage; and you can do that just as
               | easily by creating a new API key and setting its name to
               | "Guesspage".
               | 
               | The AI actually told me that was unsafe, and I corrected
               | it. To the best of my understanding, the only thing that
               | you can do with the API key is do Google Drive uploads to
               | your own drive or that of someone who lets you that look
               | to Google as if my app is triggering them. If there's a
               | danger that can arise from that, and I don't think there
               | is, then it's on me, not on Sonnet.
               | 
               | (It's also referer domain limited, but that's worthless.
               | If only there was a way to cryptographically sign a
               | referer...)
        
           | threeseed wrote:
           | I just asked Claude to generate some code using the SAP
           | SuccessFactors API.
           | 
           | Every single example was completely useless. The code
           | wouldn't compile, it would invent methods and variables and
           | the instructions to go along with it were incoherent. All
           | whilst gaslighting along with the way.
           | 
           | I have also previously tried using it with some Golang code
           | and it would constantly add weird statements e.g. locking on
           | non-concurrent operations.
           | 
           | LLMs are great when you are doing the same things as everyone
           | else. Step outside of that and it's far more trouble than
           | it's worth.
        
         | sksxihve wrote:
         | Because they all use AI to write the articles.
        
           | Ekaros wrote:
           | There is a market for AI. And it is exactly these articles
           | and maybe pictures attached to them. Soon could be some
           | videos as well. But how far beyond that. Is very good
           | question.
        
           | __MatrixMan__ wrote:
           | AI trained on a web that's primarily about selling things
        
         | bugbuddy wrote:
         | This just reminded I forgot I have had a Copilot subscription.
         | It has not made any useful code suggestions in months to the
         | point of fading from my memory. I just logged in to cancel it.
         | Now, I need to check my other subscriptions that I can cancel
         | or reduce to a lower tier.
        
         | falcor84 wrote:
         | From my experience, it is getting better over time, and I
         | believe that there's still a lot of relatively low hanging
         | fruit, particularly in terms of integrating the LLM with the
         | language server protocol and other tooling. But having said
         | that, at this point in time, it's just not good enough for
         | independent work, so I would suggest using it only as you would
         | pair-program with a mid-level human developer who doesn't have
         | much context on the project, and has a short attention span. In
         | particular, I generally only have the AI help me with one
         | function/refactoring at a time, and in a way that is easy for
         | me to test as we go, and am finding immense value.
        
           | dangerwill wrote:
           | I think some of the consternation we see from the anti LLM
           | crowd (of which I'm one) is this line of reasoning. These
           | LLMs produce fine code when the code you are asking for is in
           | its training set. So they can be better than a mid level dev
           | and much faster in narrow, unknown contexts. But with no
           | feedback to warn you, if you ask it for code that it has no
           | or only a bit of data on, it is much worse than a rubber
           | duck.
           | 
           | That and tech's status inflation means when we are talking
           | about "mid level" engineers, really we are talking about
           | engineers with a couple years of experience who have just
           | graduated to the training wheels phase of producing
           | production code. LLMs are still broadly aimed at removing the
           | need for what I would just call junior engineers.
        
             | whiplash451 wrote:
             | That and the fact that code does not live in a standalone
             | bubble, but in a complex setup of OSes, APIs, middleware
             | and other languages. My experience trying to use Claude to
             | help me with that was disappointing.
        
         | drowsspa wrote:
         | Yeah, it's actually frustrating that even when writing Go code,
         | which is statically typed, it keeps messing up the arguments
         | order. That would seem to me a pretty easy thing to generate.
         | 
         | Although it's much better when writing standard REST and gRPC
         | APIs
        
         | righthand wrote:
         | I see the same results as my TabNine+Template
         | generator+language server as I do with things like CoPilot. I
         | get TabNine issues when the code base isn't huge. I think also
         | tossing away language servers and template generators for just
         | LLM will just lead to seeking "proper predictive path". Most of
         | the time the LLM will spit out the create-express/react-
         | template for you, when you ask it to customize it will guess
         | using the most common patterns. Do you need something to guess
         | for you?
         | 
         | It's also getting worse because people are poisoning the well.
        
         | badgersnake wrote:
         | It's kinda true though. They are increasingly used for those
         | things. Sure, the results are terrible and doing it without AI
         | almost always yields better results but that doesn't seem to
         | stop people.
         | 
         | Look at this nonsense for example: https://intouch.family/en
        
           | anon7725 wrote:
           | That's one of the saddest bits of AI enshittification yet.
        
           | 123yawaworht456 wrote:
           | holy shit, if that isn't satire... wow, just fucking wow.
        
         | osigurdson wrote:
         | My feeling is (current) AI is more of a teacher than an
         | implementor. It really does help when learning about something
         | new or to give you ideas about directions to take. The actual
         | code however still needs to be written by humans for the most
         | part it seems.
         | 
         | AI is a great tool and does speed things up massively, it just
         | doesn't align with the magical thought that we provide the
         | ideas and AI does all of the grunt work. In general, always
         | better to form mental models about things based on actual
         | evidence as opposed to fantasy (and there is a lot of fantasy
         | involved at the moment). This doesn't mean being pessimistic
         | about potential future advancements however. It is just very
         | hard to predict what the shape of those improvements will be.
        
         | whiplash451 wrote:
         | My experience is similar. I used Claude for a coding task
         | recently and it drove me into an infinite number of rabbit
         | holes, each one seeming worse than the previous one. All the
         | while being enable to stop and say: I'm sorry, I actually don't
         | know how to help you.
        
       | uxhacker wrote:
       | It feels like there's a big gap in this discussion. The focus is
       | almost entirely on GPU and hardware investment, which is
       | undeniably driving a lot of the current AI boom. But what's
       | missing is any mention of the software side and the significant
       | VC investment going into AI-driven platforms, tools, and
       | applications. This story could be more accurately titled 'The GPU
       | Investment Boom' given how heavily it leans into the hardware
       | conversation. Software investment deserves equal attention
        
         | pfisherman wrote:
         | Also they talk a lot about data centers and cloud compute, but
         | do not mention chips for on decide inference.
         | 
         | Given where mobile sits in the hierarchy of interfaces, that is
         | where I would be placing my bets if I were a VC.
        
         | _delirium wrote:
         | Is there a good estimate of the split? My impression from AI
         | startups whose operations I know something about is that a
         | majority of their VC raise is currently going back into paying
         | for hardware directly or indirectly, even though they aren't
         | hardware startups per se, but I don't have any solid numbers.
        
           | bbor wrote:
           | I think your analysis is spot on, based on my expertise of
           | "reading too much hacker news since every day since March
           | 2023". This Bain report[1] barely mentions "Independent
           | Software Vendors" and when they do it's clearly an
           | afterthought, and the only software focused takes I can find
           | are[2] extremely speculative, e.g.                 "For every
           | dollar invested in hardware, we expect 8-to-20 times the
           | amount to be spent on software... While the initial wave of
           | AI investment lays the foundational infrastructure, the next
           | wave is clearly set to capitalise on the burgeoning AI
           | software market."
           | 
           | I'm hoping someone more knowledgeable about capital markets
           | can fill us in here, I'd be curious to see some hard numbers
           | still! Maybe this is what a Bloomberg terminal does...?
           | 
           | Regardless, I think this makes a lot of sense; there's no
           | clear scientific consensus on the path forward for these
           | models other than "keep going?", so building out preparatory
           | infrastructure is seen as the clear, safe move. As the common
           | refrain goes: "in a gold rush, sell shovels!"
           | 
           | As a big believer in the upcoming cognitive era of software
           | and society, I would only add a short bit onto the end of
           | that saying: "...until the hydraulic mining cannons[3] come
           | online."
           | 
           | [1] https://www.bain.com/insights/ais-trillion-dollar-
           | opportunit...
           | 
           | [2] https://www.privatebankerinternational.com/comment/is-ai-
           | sof...
           | 
           | [3] https://en.wikipedia.org/wiki/Hydraulic_mining
        
         | aurareturn wrote:
         | I think GPUs and datacenter is to AI is what fiber was to the
         | dotcom boom.
         | 
         | A lot of LLM based software is uneconomical because we don't
         | have enough compute and electricity for what they're trying to
         | do.
        
           | bee_rider wrote:
           | The actual physical fiber was useful after the companies
           | popped though.
           | 
           | GPUs are different, unless things go _very_ poorly, these
           | GPUs should be pretty much obsolete after 10 years.
           | 
           | The ecosystem for GPGPU software and the ability to design
           | and manufacture new GPUs might be like fiber. But that is
           | different because it doesn't become a useful thing at rest,
           | it only works while Nvidia (or some successor) is still
           | running.
           | 
           | I do think that ecosystem will stick around. Whatever the
           | next thing after AI is, I bet Nvidia has a good enough stack
           | at this point to pivot to it. They are _the_ vendor for these
           | high-throughput devices: CPU vendors will never keep up with
           | their ability to just go wider, and coders are good enough
           | nowadays to not need the crutch of lower latency that CPUs
           | provide (well actually we just call frameworks written by
           | cleverer people, but borrowing smarts is a form of
           | cleverness).
           | 
           | But we do need somebody to keep releasing new versions of
           | CUDA.
        
             | aurareturn wrote:
             | But computer chips have always had limited usefulness
             | because newer chips are simply faster and more efficient.
             | The datacenter build outs and increase in electricity
             | capacity will always be useful.
        
       | hn_throwaway_99 wrote:
       | Reading this makes me willing to bet that this capital intensive
       | investment boom will be similar to other enormous capital
       | investment booms in US history, such as the laying of the
       | railroads in the 1800s, the proliferation of car companies in the
       | early 1900s, and the telecom fiber boom in the late 1900s. In all
       | of these cases there was an enormous infrastructure (over) build
       | out, followed by a crash where nearly all the companies in the
       | industry ended up in bankruptcy, but then that original
       | infrastructure build out had huge benefits for the economy and
       | society as that infrastructure was "soaked up" in the subsequent
       | years. E.g. think of all the telecom investment and subsequent
       | bankruptcies in the late 90s/early 00s, but then all that dark
       | fiber that was laid was eventually lit up and allowed for the
       | explosion of high quality multimedia growth (e.g. Netflix and the
       | like).
       | 
       | I think that will happen here. I think your average _investor_
       | who 's currently paying for all these advanced chips, data
       | centers and energy supplies will walk away sorely disappointed,
       | but this investment will yield huge dividends down the road.
       | Heck, I think the energy investment alone will end up
       | accelerating the switch away from fossil fuels, despite AI often
       | being portrayed as a giant climate warming energy hog (which I'm
       | not really disputing, but now that renewables are the cheapest
       | form of energy, I believe this huge, well-funded demand will
       | accelerate the growth of non-carbon energy sources).
        
         | candiddevmike wrote:
         | What will be the advantage of having a bunch of obsolete
         | hardware? All I see is more e-waste.
        
           | wslh wrote:
           | I don't think the parent was specifically referring to
           | hardware alone. The 'rails' in this context are also the AI
           | algorithms and the underlying software. New research and
           | development could lead to breakthroughs that allow us to use
           | significantly less hardware than we currently do. Just as the
           | dot-com crash wasn't solely about the physical infrastructure
           | but also about protocols like HTTP, I believe the AI boom
           | will involve advancements beyond just hardware. There may be
           | short-term excess, but the long-term benefits, particularly
           | on the software side, could be immense.
        
           | iTokio wrote:
           | Well, at least they are paving the way to more efficient
           | hardware, GPU are way, way more energy efficient than CPU and
           | the parallel architectures are the only remaining way to
           | scale compute.
           | 
           | But yes, a lot of energy wasted in the growing phase.
        
             | dartos wrote:
             | GPUs are different than CPUs.
             | 
             | They're way more efficient at matmuls, but start throwing
             | branching logic at them and they slow down a lot.
             | 
             | Literally a percentage of their cores will noop while
             | others are executing a branch, since all cores are
             | lockstep.
        
             | aurareturn wrote:
             | >But yes, a lot of energy wasted in the growing phase.
             | 
             | Why exactly is energy wasted during this phase?
             | 
             | Are you expecting hardware to become obsolete much faster?
             | But that only depends on TSMC's node cadence, which is
             | still 2-3 years. Therefore, AI hardware will still be bound
             | to TSMC's cadence.
        
           | goda90 wrote:
           | Even if the hardware quickly becomes outdated, I'm not sure
           | it'll become worthless so quickly. And there's also the
           | infrastructure of the data center and new electricity
           | generation to power them. Another thing that might survive a
           | crash and carry on to help the future is all the code used to
           | support valuable use cases.
        
           | almost_usual wrote:
           | In the case of dark fiber the hardware was fine, wavelength
           | division multiplexing was created which increased capacity by
           | 100x in some cases crashing demand for new fiber.
           | 
           | I think OP is suggesting AI algorithms and training methods
           | will be improve resulting in enormous performance gains with
           | existing hardware causing a similar surplus of infrastructure
           | and crash in demand.
        
             | llamaimperative wrote:
             | How much of current venture spending is going into reusable
             | R&D that can be moved forward in time the way that physical
             | infrastructure in their examples were able to be used in
             | the future?
        
           | CamperBob2 wrote:
           | Do you expect better hardware to suddenly start appearing on
           | the market, fully-formed from the brow of Zeus?
        
           | bee_rider wrote:
           | Maybe the bust will be so rough that TSMC will go out of
           | business, and then these graphics cards will not go obsolete
           | for quite a while.
           | 
           | Like Intel and Samsung might make a handful of better chips
           | or whatever, but neither of their business models really
           | involve being TSMC. So if the bubble pop took out TSMC, there
           | wouldn't be a new TSMC for a while.
        
           | aurareturn wrote:
           | >What will be the advantage of having a bunch of obsolete
           | hardware? All I see is more e-waste.
           | 
           | The energy build out, data centers are not wasted. You can
           | swap out A100 GPUs for BH200 GPUs in the same datacenter.
           | A100s will be 5 years old when Blackwell is out - which is
           | just about right for how long datacenter chips are expected
           | to last.
           | 
           | I do, however, think that the industry will move to newer
           | hardware faster to try to squeeze as much efficiency as
           | possible due to the energy bottleneck. Therefore, I expect
           | TSMC's N2 nodes to have huge demand. In fact, TSMC themselves
           | have said designs for N2 far outnumber N3 at the same stage
           | of the node. This is most likely due to AI companies that
           | want to increase efficiency due to the lack of electricity.
        
         | bwanab wrote:
         | While I agree with your essential conclusions, I don't think
         | the automobile companies really fit. Many of the early 1900s
         | companies (e.g. Ford, GM, Mercedes, even Chrysler) are still
         | among the largest auto companies in the world.
        
           | throwaway20222 wrote:
           | There were hundreds of failed automotive companies and parts
           | suppliers though. I think the argument is that many will die,
           | some will survive and take all (most)
        
             | aurareturn wrote:
             | But that happens in every bubble. Over investment,
             | consolidation, huge winners in the end, and maybe
             | eventually a single monopoly.
        
               | danielmarkbruce wrote:
               | There isn't a rule as to how it plays out. No huge
               | winners in cars, no huge winners in rail. Lots of huge
               | winners in internet.
        
           | cloud_hacker wrote:
           | > While I agree with your essential conclusions, I don't
           | think the automobile companies really fit. Many of the early
           | 1900s companies (e.g. Ford, GM, Mercedes, even Chrysler) are
           | still among the largest auto companies in the world.
           | 
           | American Automative filled for Bankruptcy multiple times.
           | 
           | American Government had to step in to back them up and bail
           | them out.
        
           | nemo44x wrote:
           | That phase is called consolidation. It's part of the cycle.
           | The speculative over leveraged and mismanaged companies get
           | merged into the winners or disappear if they have nothing of
           | value.
        
           | grecy wrote:
           | A couple of them went bankrupt and got bailouts.
        
         | aurareturn wrote:
         | I'm sure you are right. At some point, the bubble will crash.
         | 
         | The question remains is when the bubble will crash. We could be
         | in the 1995 equivalent of the dotcom boom and not 1999. If so,
         | we have 4 more years of high growth and even after the crash,
         | the market will still be much bigger in 2029 than in 2024.
         | Cisco was still 4x bigger in 2001 than in 1995.
         | 
         | One thing that is slightly different from past bubbles is that
         | the more compute you have, the smarter and more capable AI.
         | 
         | One gauge I use to determine if we are still at the beginning
         | of the boom is this: Does Slack sell an LLM chatbot solution
         | that is able to give me reliable answers to business/technical
         | decisions made over the last 2 years in chat? We don't have
         | this yet - most likely because it's probably still too
         | expensive to do this much inference with such high context
         | window. We still need a lot more compute and better models.
         | 
         | Because of the above, I'm in the camp that believe we are
         | actually closer to the beginning of the bubble than at the end.
         | 
         | Another thing I would watch closely to see when the bubble
         | might pop is if LLM scaling laws are quickly breaking down and
         | that more compute no longer yields more intelligence in an
         | economical way. If so, I think the bubble would pop. All eyes
         | are on GPT5-class models for signs.
        
           | vladgur wrote:
           | Re: Slack chat:
           | 
           | Glean.com does it for the enterprise I work at: It consumes
           | all of our knowledge sources including Slack, Google docs,
           | wiki, source code and provides answers to complex specific
           | questions in a way that's downright magical.
           | 
           | I was converted into a believer when I described an issue to
           | it, pointers to a source file in online git repo and it
           | pointed me to another repository that my team did not own
           | that controlled DNS configs that we were not aware about.
           | These configs were the reason our code did not behave as we
           | expected.
        
             | aurareturn wrote:
             | Thanks. I didn't know that existed. But does it scale?
             | Would it still work if large companies with many millions
             | of Slack messages?
             | 
             | I suppose one reason Slack doesn't have a solution yet is
             | because they're having a hard time getting it to work for
             | large companies.
        
               | hn_throwaway_99 wrote:
               | Yeah, Glean does this and there are a bunch of other
               | competitors that do it as well.
               | 
               | I think you may be confused about the length of the
               | context window. These tools don't pull all of your Slack
               | history into the context window. They use a RAG approach
               | to index all of your content into a vector DB, then when
               | you make a query only the relevant document snippets are
               | pulled into the context window. It's similar for example
               | to how Cursor implements repository-wide AI queries.
        
               | aurareturn wrote:
               | I'm aware that one can't feed millions of messages into
               | an LLM all at once. The only way to do this now is to use
               | a RAG approach. But RAG approach has pros and cons and
               | can miss crucial information. I think context window
               | still matters a lot. The bigger the window, the more
               | information you can feed in and the quality of answer
               | should increase.
               | 
               | The point I'm trying to make is that increase context
               | window will require more compute. Hence, we could still
               | just be in the beginning of the compute/AI boom.
        
               | reissbaker wrote:
               | We might be even earlier -- the 90s was a famous boom
               | with a fast bust, but to me this feels closer to the dawn
               | of the personal computer in the late 70s and early 80s:
               | we can automate things now that were impossible to
               | automate before. We might have a long time before seeing
               | diminishing returns.
        
             | _huayra_ wrote:
             | This is the main "killer feature" I've personally
             | experienced from GPT things: a much better contextual
             | "search engine-ish" tool for combing through and
             | correlating different internal data sources (slack, wiki,
             | jira, github branches, etc).
             | 
             | AI code assistants have been a net neutral for me (they get
             | enough idioms in C++ slightly incorrect that I have to
             | spend a lot of time just reading the generated code
             | thoroughly), but being able to say "tell me what the
             | timeline for feature X is" and have it comb through a bunch
             | of internal docs / tickets / git commit messages, etc, and
             | give me a coherent answer with links is amazing.
        
               | aurareturn wrote:
               | This is partly why I believe OS makers, Apple, Microsoft,
               | Google, have a huge advantage in the future when it comes
               | to LLMs.
               | 
               | They control the OS so they can combine and feed all your
               | digital information to an LLM in a seamless way. However,
               | in the very long term, I think their advantage will go
               | away because at some point, LLMs could get so good that
               | you don't need an OS like iOS anymore. An LLM could
               | simply become standalone - and function without a
               | traditional OS.
               | 
               | Therefore, I think the advantage for iOS, Android,
               | Windows will increase in the next few years, but less
               | powerful after that.
        
               | thwarted wrote:
               | An LLM is an application that runs on an operating system
               | like any other application. That the vendor of the
               | operating system has tied it to the operating system is
               | purely a marketing/force-it-onto-your-device/force-it-in-
               | front-of-your-face play. It's forced bundling, just like
               | Microsoft did with Internet Explorer 20 years ago.
        
               | aurareturn wrote:
               | I predict that OpenAI will try to circumvent iOS and
               | Android by making their own device. I think it will be
               | similar to Rabbit R1, but not a scam, and a lot more
               | capable.
               | 
               | They recently hired Jony Ive on a project - it could be
               | this.
        
               | aaronblohowiak wrote:
               | >they get enough idioms in C++ slightly incorrect
               | 
               | this is part of why I stay in python when doing ai-
               | assisted programming; there's so much training
               | information out there for python and I _generally_ don't
               | care about if its slightly off-idiom, its still probably
               | fine.
        
             | mvdtnz wrote:
             | My workpalce uses Glean and since it was connected to Slack
             | it has become significantly worse. It routinely gives
             | incorrect or VERY incomplete information, misattributes
             | work to developers who may have casually mentioned a
             | project at some time and worst of all presents jokes or
             | sarcastic responses as fact.
             | 
             | Not only is it an extremely poor source of information, it
             | has ruined the company's Slack culture as people are no
             | longer willing to (for lack of a better term) shitpost
             | knowing that their goofy sarcasm will now be presented to
             | Glean users as fact.
        
           | HarHarVeryFunny wrote:
           | > the more compute you have, the smarter and more capable AI
           | 
           | Well, this is taken on faith by OpenAI/etc, but obviously the
           | curve has to flatten at some point, and appears to already be
           | doing so. OpenAI are now experimenting with scaling
           | inference-time compute (GPT-O1), but have said that it takes
           | exponential increases in compute to produce linear gains in
           | performance, so it remains to be seen if customers find this
           | a worthwhile value.
        
             | aurareturn wrote:
             | GPT-o1 does demonstrate my point: the more compute you
             | have, the smarter the AI.
             | 
             | If you run chain of thoughts on an 8B model, it becomes a
             | lot smarter too.
             | 
             | GPT-o1 isn't GPT5 though. I think OpenAI will have a chain
             | of thoughts model for GPT5-class models as well. They're
             | separate from normal models.
        
               | HarHarVeryFunny wrote:
               | There is only so much that an approach like O1 can do,
               | but anyways in terms of AI boom/bust the relevant
               | question is whether this is a viable product. All sorts
               | of consumer products could be improved by making them a
               | lot more expensive, but there are cost/benefit limits to
               | everything.
               | 
               | GPT-5 and Claude-4 will be interesting, assuming these
               | are both pure transformer models (not COT), as they will
               | be a measure how much benefit remains to be had from
               | training set scaling. I'd expect gains will be more
               | against narrow benchmarks, than in the overall feel of
               | intelligence (LLM arena score?) one gets from the model.
        
           | jackcosgrove wrote:
           | > One gauge I use to determine if we are still at the
           | beginning of the boom is this
           | 
           | Has your barber/hairdresser recommended you buy NVDA?
        
             | arach wrote:
             | There was an NVDA earnings watch party in NY this summer
             | and Jensen signed some boobs earlier this year. There are
             | some signs but still room to run
        
           | tim333 wrote:
           | You can never really tell, though following some market tea
           | leaf readers they seem to think a few months from now, after
           | a bit of a run up in the market. Here's one random datapoint,
           | on mentions of "soft landing" in Bloomberg
           | https://x.com/bravosresearch/status/1848047330794385494
        
             | aurareturn wrote:
             | I read through a few pages of tweets from this author and
             | it looks just like another perpetual doomsday pundit akin
             | to Zerohedge.
        
               | tim333 wrote:
               | Well yeah there may be a bit of that. I find them quite
               | interesting for the data they bring up like the linked
               | tweet but I don't really have an opinion as to whether
               | they are any good at predicting things.
        
         | HarHarVeryFunny wrote:
         | Similarly, I like to compare AI (more specifially LLM)
         | "investment" to the cost of building the channel tunnel between
         | UK and France. The original investors lost their shirt, but
         | once built it is profitable to operate.
        
           | tim333 wrote:
           | I was an original investor. I still have shirts and shares in
           | it but they could have done better.
        
         | ben_w wrote:
         | > but now that renewables are the cheapest form of energy, I
         | believe this huge, well-funded demand will accelerate the
         | growth of non-carbon energy sources
         | 
         | I think the renewables would have been built at the same rate
         | anyway precisely because they're so cheap; but nuclear power,
         | being expensive, would not be built if this bubble had not
         | happened, and somehow nuclear does seem to be getting some of
         | this money.
        
           | atomic128 wrote:
           | I want to point out to anyone who's interested in the nuclear
           | angle that even before the AI data center demand story
           | arrived, the uranium market was facing a persistent
           | undersupply for the first time in its many decades of
           | history. As a result, the (long-term contract) price of
           | uranium has been steadily rising for years:
           | https://www.cameco.com/invest/markets/uranium-price
           | 
           | After Fukushima
           | (https://news.ycombinator.com/item?id=41768726), Japanese
           | reactors were shut down and there was a glut of uranium
           | available in the spot market. Simultaneously, Kazatomprom
           | flooded the market with cheap ISR uranium. The price of
           | uranium fell far below the cost of production and the mining
           | companies were obliterated. The few miners that survived via
           | their long-term contracts (primarily Cameco) put their less
           | efficient mines into care and maintenance.
           | 
           | Now we're seeing the uranium mining business wake up. But
           | after a decade of bear-market conditions the miners cannot
           | serve the demand: they've underinvested, they've lost skilled
           | labor, they've shrunk. The rebound in uranium supply will be
           | slow, much slower than the rebound in demand. This is because
           | uranium mining is an extremely difficult process. Look at how
           | long NexGen Energy's Rook 1 Arrow mine has taken to develop,
           | and that's prime ore (https://s28.q4cdn.com/891672792/files/d
           | oc_downloads/2022/03/...). Look at Kazatomprom's slowing
           | growth rate (https://world-nuclear-
           | news.org/Articles/Kazatomprom-lowers-2...), look at the
           | incredible complexity of Cameco's mining operations:
           | https://www.petersenproducts.com/articles/an-inflatable-
           | tunn...
           | 
           | Here is a discussion of the uranium mining situtation:
           | https://news.ycombinator.com/item?id=41661768 (including a
           | very risky method of profiting from the undersupply of
           | uranium, stock ticker SRUUF, not recommended). Note that
           | Numerco's uranium spot price was put behind a paywall last
           | week. You can still get the intra-day spot uranium price for
           | free here: https://www.yellowcakeplc.com/
        
             | ben_w wrote:
             | Uranium, at least the un-enriched kind you can just buy,
             | was never the problem.
             | 
             | Even the peak of that graph (136... er, USD per lb?) is
             | essentially a rounding error compared to everything else.
             | 
             | 0.00191 USD/kWh? Something like that, depends on the type
             | of reactor it goes in.
        
               | atomic128 wrote:
               | You are correct. This is one of the advantages of nuclear
               | power.
               | 
               | The fuel is a tiny fraction of the cost of running the
               | plant. See discussion here, contrasting with natural gas:
               | https://news.ycombinator.com/item?id=41858892
               | 
               | It is also important that the fuel is physically small so
               | you can (and typically, do) store years of fuel on-site
               | at the reactor. Nuclear is "secure" in the sense that it
               | can provide "energy security".
        
           | synergy20 wrote:
           | based on my reading nuclear power is much cheaper overall
           | compared to wind solar etc?
        
             | atomic128 wrote:
             | Yes, that's right. See the recent discussion here:
             | 
             | https://news.ycombinator.com/item?id=41860341
             | 
             | Basically, nuclear fission is clean baseload power. Wind
             | and solar are not baseload power sources. They don't really
             | compete. See discussion here:
             | https://news.ycombinator.com/item?id=41858892
             | 
             | Furthermore, we're seeing interest (from Google and Amazon
             | and Dow Chemical) in expensive but completely safe TRISO
             | (HALEU) reactors (https://www.energy.gov/ne/articles/triso-
             | particles-most-robu...). These companies want clean
             | baseload power, with no risk of meltdown, and they're
             | willing to pay for it. Here's what Amazon has chosen:
             | https://x-energy.com/fuel/triso-x
             | 
             | TRISO (HALEU) reactors use more than 1.5 times the natural
             | uranium per unit of energy produced because the higher
             | burnup is offset by higher enrichment inputs (see page 11
             | at https://fuelcycleoptions.inl.gov/SiteAssets/SitePages/Ho
             | me/1...), and the fuel is even more expensive to
             | manufacture, but they are completely safe. This is a
             | technology from the 1960's but it's attractive now because
             | so much money is chasing clean baseload nuclear fission for
             | data centers.
             | 
             | These "impossible to melt down" TRISO small modular nuclear
             | fission reactors are what Elon Musk was talking about on
             | the campaign trail last week, when he said:
             | ELON MUSK: "The dangers of nuclear power are greatly
             | overstated. You can make a nuclear reactor that is
             | literally impossible to melt down even if you tried to
             | melt it down. You could try to bomb the place, and it
             | still wouldn't melt down. There should be no regulatory
             | issues with that. There should be significant nuclear
             | reform."
             | 
             | https://x.com/AutismCapital/status/1847452008502219111
        
               | ViewTrick1002 wrote:
               | > _Basically, nuclear fission is clean baseload power.
               | Wind and solar are not baseload power sources. They don
               | 't really compete._
               | 
               | This means you don't understand how the grid works.
               | California's baseload is ~15 GW while it peaks at 50 GW.
               | 
               | New built nuclear power is wholly unsuitable for load
               | following duty due to the economics. It is an insane
               | prospect when running at 100% 24/7, and even worse when
               | it has to adapt.
               | 
               | Both nuclear power and renewables need storage,
               | flexibility or other measures to match their
               | inflexibility to the grid.
               | 
               | See the recent study where it was found that nuclear
               | power needs to come down 85% in cost to be competitive
               | with renewables, due to both options requiring
               | dispatchable power to meet the grid load.
               | 
               | > _The study finds that investments in flexibility in the
               | electricity supply are needed in both systems due to the
               | constant production pattern of nuclear and the
               | variability of renewable energy sources. However, the
               | scenario with high nuclear implementation is 1.2 billion
               | EUR more expensive annually compared to a scenario only
               | based on renewables, with all systems completely
               | balancing supply and demand across all energy sectors in
               | every hour. For nuclear power to be cost competitive with
               | renewables an investment cost of 1.55 MEUR /MW must be
               | achieved, which is substantially below any cost
               | projection for nuclear power._
               | 
               | https://www.sciencedirect.com/science/article/pii/S030626
               | 192...
               | 
               | > These companies want clean baseload power, with no risk
               | of meltdown, and they're willing to pay for it. Here's
               | what Amazon has chosen
               | 
               | The recent announcements from the hyperscalers are PPAs.
               | If the company building the reactor can provide power at
               | the agreed price they will take it off their hands. Thus
               | creating a more stable financial environment to get
               | funding.
               | 
               | They are not investing anything on their own. For a
               | recent example NuScale another SMR developer essentially
               | collapsed when their Utah deal fell through when nice
               | renders and PowerPoints met real world costs and
               | deadlines.
               | 
               | https://iceberg-research.com/2023/10/19/nuscale-power-
               | smr-a-...
               | 
               | > with no risk of meltdown
               | 
               | Then we should be able to remove the enormous subsidy the
               | Price Anderson act adds to the industry right? Let all
               | new reactors buy insurance for a Fukushima level accident
               | in the open market.
               | 
               | Nuclear powerplants are currently insured for ~0.05% of
               | the cost of a Fukushima style accident and pooled
               | together the entire US industry covers less than 5%.
               | 
               | https://en.wikipedia.org/wiki/Price%E2%80%93Anderson_Nucl
               | ear...
        
             | ViewTrick1002 wrote:
             | Not at all. Old paid of nuclear plants are competitive but
             | new builds are insanely expensive leading to $140-220/MWh
             | prices for the ratepayers before factoring in grid
             | stability and transmission costs.[1]
             | 
             | The US has zero commercial reactors under construction and
             | this is for one reason: economics.
             | 
             | The recent announcements from the hyperscalers are PPAs. If
             | the company building the reactor can provide power at the
             | agreed price they will take it off their hands. Thus
             | creating a more stable financial environment to get
             | funding.
             | 
             | They are not investing anything on their own. For a recent
             | example NuScale another SMR developer essentially collapsed
             | when their Utah deal fell through when nice renders and
             | PowerPoints met real world costs and deadlines. [2]
             | 
             | [1]: https://www.lazard.com/media/gjyffoqd/lazards-
             | lcoeplus-june-...
             | 
             | [2]: https://iceberg-research.com/2023/10/19/nuscale-power-
             | smr-a-...
        
               | floren wrote:
               | > leading to $140-220/MWh prices for the ratepayers
               | 
               | I'm on PG&E, I _wish_ I could get my electricity for only
               | $0.14 /kWh
        
               | ViewTrick1002 wrote:
               | That cost is excluding grid stability and transmission
               | costs.
               | 
               | From what I've understood PG&E's largest problem is the
               | massive payouts and infrastructure upgrades needed from
               | the wildfires, not the cost of the electricity itself.
        
         | from-nibly wrote:
         | The problem is that all that mal investment will get bailed
         | about by us regular shmucks. Get ready for the hamster wheel to
         | start spinning faster.
        
         | kjkjadksj wrote:
         | Not all of that infrastructure gets soaked up, plenty is
         | abandoned. Look at the state of american passenger rail for
         | example and how quickly the bottom of that industry dropped
         | out. Many old rail right of ways sit abandoned today. Likewise
         | with telecoms, e.g. the microwave network that also sits
         | abandoned today.
        
         | jacobgorm wrote:
         | Railroads and computer networks create network effects, I am
         | not sure the same is true for data centers full of hardware
         | that becomes outdated very quickly.
        
           | CSMastermind wrote:
           | If they're building new power plants to support all those
           | data centers than that power generation capacity might be put
           | to good use doing something else.
        
         | jiggawatts wrote:
         | Something people forget is that a training cluster with tens of
         | thousands of GPUs is a general purpose supercomputer also! They
         | can be used for all sorts of numerical modelling codes, not
         | just AI. Protein folding, topology optimisation, route
         | planning, satellite image processing, etc...
         | 
         | We bought a lot of shovels. Even if we don't find more gold, we
         | can dig holes for industry elsewhere.
        
       | shortrounddev2 wrote:
       | I can't wait for the AI bubble to be over so HN can talk about
       | something else
        
         | throwaway314155 wrote:
         | I will take AI bubble over crypto bubble any day of the week.
        
           | Melting_Harps wrote:
           | > I will take AI bubble over crypto bubble any day of the
           | week.
           | 
           | I've been in the former since '21 and have seen every single
           | cycle since 2011 in the latter, I can assure their is more
           | dumb money in the former than in the latter; (just by scale
           | alone) at least in the latter whether it was ICO or NFTs or
           | whatever mal-investment was promptly punished (rugpulls/exit
           | scams) companies like INTEL get to stay in Zombie mode
           | because of the corpo-welfare that the US doles out while
           | shaming everyone else to be prudent with their investments
           | while these corps and banks spend like drunken sailors and
           | tries to strangle the former out of existence (rightly so in
           | most cases as most crypto is a total scam).
           | 
           | With that said, what you will see emerge are some incredibly
           | established players in both fields that will have the staying
           | power to change how the Industry is shaped around them:
           | Nvidia and Bitcoin are comparable to one another in that
           | respect.
           | 
           | Both have/had crazy volatility but the staying power and just
           | the fact they remain firmly at the center of both Industry's
           | is rather telling that you simply don't see what these
           | technologies offer because of the hype and boom and bust
           | cycles.
           | 
           | As a person who directly benefits from this: I can assure you
           | most of these VCs are exit liquidity just as most foolish
           | people are for the alt scams of yore, execpt the US economy
           | (likely all of the Western World at this point) isn't
           | entirely reliant on the promise of vapourware with 'crypto'
           | in any capacity, weheras the same cannot be said about the
           | theatrics of Jensen's Nvidia.
           | 
           | Source: I build data center infrastructure for these mega
           | corps doing 'AI' and I'm doing an MSc in CS (Big Data) and
           | been a Bitcoiner since Satoshi was still on BTF.
        
             | throwaway314155 wrote:
             | You might be right, but the crypto people were/are
             | basically religious in their responses. I see a few loons
             | for LLM's talking about how AGI is near, and of course
             | there's the EA/LessWrong people talking about doomsday. But
             | none of them were as staunchly dug in _and_ misinformed as
             | the crypto folks.
             | 
             | edit: if it isn't clear I'm a staunch opponent of
             | cryptocurrency in any form.
        
               | Melting_Harps wrote:
               | > edit: if it isn't clear I'm a staunch opponent of
               | cryptocurrency in any form.
               | 
               | It's very clear, but your exposure to zealots, on both
               | sides, shouldn't deter you from being objective and
               | seeing what these technologies actually offer. Hence why
               | i wrote that part in the 2nd to last paragraph.
               | 
               | HN has such misinfored vitriol for any technology it
               | didn't ordain itself, you sem to be of that cohort,
               | what's odd is that very same people who gave you VC.SV
               | funded startup land are all major backers of this
               | technology.
               | 
               | I can just summarize this in one phrase: you seem to
               | collectively not know, what you don't know and make leaps
               | in logic and misinformed judgments from that POV.
        
               | throwaway314155 wrote:
               | I have little interest in the ycombinator legacy of
               | hustle culture, growth hacking, get-millions-for-
               | glorified-todo-app, etc. As far as I can tell it is
               | effectively the underlying reason for why crypto and AI
               | get hyped up to the point where we can't have reasonable
               | discussions about them in forums.
               | 
               | I'm just here because it happens to be where like-minded
               | people (_sometimes_) hang out.
        
               | Melting_Harps wrote:
               | > I have little interest in the ycombinator legacy of
               | hustle culture, growth hacking, get-millions-for-
               | glorified-todo-app, etc. As far as I can tell it is
               | effectively the underlying reason for why crypto and AI
               | get hyped up to the point where we can't have reasonable
               | discussions about them in forums.
               | 
               | Ohh, well... I'm guilty of drinking that kool-aid,
               | unfortunately and was a boot-strapping fintech founder
               | with the battle scars to show--those scars appear in this
               | discussion thus far by the way.
               | 
               | But I get it, I'm trying to be amicable about this as
               | much as I can, especially fbecause I know no one can deny
               | us anymore in the BTC side at this point, and in the AI
               | side... well, money-hype boom and AI-doomer pr0n cycles
               | aside we are actually building amazing amounts of compute
               | that hopefully can yield amazing results, something like
               | Starship recovery system levels of advancement in many
               | other Industries/Sectors one day, probably very far off
               | in the future but that's the start, right?
               | 
               | Every forest starts with a sappling kind of a thing, and
               | these two technologies emerged from a time when I was in
               | my formidable development period so I saw them as
               | something more than just the marketing side--AI is
               | marketing, ML is really just stats with code to back it
               | up after all. Bitcoin is just a FOSS network using token
               | based cryptographic key encryption.
               | 
               | Stop using throwaways if you want real conversations, it
               | might help you have those conversations you're looking
               | for. :)
        
               | Melting_Harps wrote:
               | zifpanachr23 said:
               | 
               | > AI people sound more dug in to be honest from my
               | perspective. But I guess that's cause the crypto stuff
               | tends to be less overtly religious and more overtly
               | batshit crazy politics and economics, which I'm much more
               | used to dealing with haha. And mostly, everyone has
               | figured out the scam by now on the crypto side.
               | 
               | >>The AI people freak me out cause they are all talking
               | eschatology and shit as if they have stumbled upon the
               | literal ark of the covenant like in raiders of the lost
               | ark or something.
               | 
               | >>>It's a really great act to be honest. They've been
               | clearly studying a lot of the more dishonest American
               | religious culture of the last couple of decades.
               | 
               | I'm going to commit a HN faux pas to prove a point and
               | show you why I think Bitcoin has a valid use case here
               | alone: I decided to repost what he said because there are
               | valid points here and are worth discussing.
               | 
               | Had I the inclination I can hash this into the blockchain
               | for all to see what was written from this poster for the
               | aforementioned reasons for as long as the mainchain
               | continues to be maintained, protected and supported .
               | 
               | This has great utility, and the mere suggestion that you
               | cannot get over that is because those 'crazies offend me
               | and my disposition' and stop there you fail to see why
               | and what this technology can already do--create an actual
               | immutable archive of all Human history if we desire it.
               | 
               | But to his point, yes it's roots in Crypto-Anarchism
               | (which started in CA at the inception of the rise of
               | modern SV btw) has many of you questioning the ''sanity'
               | and 'motives' behind this technology, and you assume they
               | are all the same but rest assure their is a reason for
               | the brain drain from all of tech/STEM/finance during my
               | era and time in Bitcoin.
               | 
               | Most of whom are now incredibly wealthier than they ever
               | were working in academia or private industry if you think
               | money is a measure of one's success--I don't, but most of
               | you do.
               | 
               | The AI people strike me more as a range of the
               | introduction corpos from banking and academia into
               | bitcoin (Gavin's, Hearn) to total con men like Veer and
               | sprinkled in there are the cult memebers you mentioned
               | who honestly think that their techno-utopian trans-
               | humanist dreams are being built one LLM update at a time.
               | It's sad... it's the same thing just different
               | names/faces.
        
               | dangerwill wrote:
               | No one cares that blockchains are immutable, that doesn't
               | mean that information written there is correct. Just that
               | it was written on X date and the content. You could find
               | proof of the biggest scandal of all time and post it on
               | the blockchain so "the man" can't stop the word from
               | getting out but 99.99999999% of readers would read a
               | version presented by a simple web server and with the
               | value cached in a closed database or memory. Which if the
               | government wants to take down, it can. And if that does
               | go down, no one will save a link to the entry on the
               | blockchain. And on the flip side I could write obvious
               | falsehoods in the same way. Blockchain provides no value
               | for legal attestation nor information distribution.
               | 
               | In practice, the vast majority of blockchain ledgers
               | record the history of scams, penny stock style trading
               | and money laundering attempts.
        
           | dangerwill wrote:
           | Yes, I agree wholeheartedly and I actively dislike the
           | concept of LLMs for anything real. But nothing will be worse
           | than the flood of outright scams or attempts at rent
           | seeking/middle man creation that crypto was. At least LLMs
           | have some potential use cases (and line level auto complete
           | is genuinely better now because of LLMs)
        
         | bugbuddy wrote:
         | I think it will burst when the Fed realizes inflation is not
         | done and start raising again in 6 months. They can only feed
         | the bubble for so long before the common people have had enough
         | of rising prices.
        
           | almost_usual wrote:
           | The Fed raising rates will increase inflation at this point
           | (and further increase fiscal deficits), nothing stops that
           | train.
           | 
           | Arguably if the investment here works out we'll see deflation
           | through extreme technical advancements.
        
             | bugbuddy wrote:
             | No, raising rate would bring the economy to a slower pace
             | and reduce private sector consumer demand. Private sector
             | investment can continue to increase but at some point that
             | too will hit a brick wall. The public sector spending
             | depends on which type of big ego people get to make
             | decisions. Given the extreme excesses so far it can go
             | either way. The now extinct fiscal conservatives might just
             | make a return finally but don't hold your breath.
        
               | almost_usual wrote:
               | Raising rates works in the beginning with high fiscal
               | deficit driven inflation by slowing demand and bank
               | lending.
               | 
               | But raising interest rates and keeping them high in an
               | environment where runaway government deficits and high
               | government debts are causing inflation runs the risk of
               | exacerbating inflation.
               | 
               | You have high interest rates on a large amount of
               | government debt which continues to push _more_ money into
               | the economy.
               | 
               | The Fed doesn't have any real options at this point but
               | to lower rates.
        
               | bugbuddy wrote:
               | Public sector demand is a much smaller percentage of the
               | overall economy. If raising rates did not slow the
               | economy due to high government deficit spending, then we
               | would certainly be living in a much different world of
               | command economy with the government running everything.
               | That's not yet the world we live in.
               | 
               | Another possibility is that the rate is still not high
               | enough and needs to be raised much much higher to stop
               | inflation. I think rates need to be in the 6 to 7 percent
               | to really stop inflation. The is just a pause. It will
               | come back like a vengeance.
        
               | bubbleRefuge wrote:
               | Ask Argentina about that. They started finally reducing
               | rates and its working some.
        
               | bubbleRefuge wrote:
               | Wow! Rare to see someone get it. MMT follower ? Would add
               | that the money printing is being distributed
               | proportionaly to the wealthy under a Deomcrat regime.
               | Pretty sad.
        
               | kibwen wrote:
               | _> keeping them high_
               | 
               | At some point we need to address the elephant in the room
               | and ask people specifically what they mean by "high"
               | rates, because 5% isn't particularly high by historical
               | terms, it's only high for people who never paid attention
               | to interest rates before 2010.
        
         | nineteen999 wrote:
         | You can always join the Wordpress tantrum discussions if you're
         | getting fatigued, that ones really jumping around here lately.
        
           | kevindamm wrote:
           | I'm designing an extension of datalog instead.
        
         | j_timberlake wrote:
         | People are going to be talking about AI for the rest of your
         | life, but feel free to go join an Amish community or live in
         | the woods, maybe get a job as a Firewatch.
        
       | SubiculumCode wrote:
       | Question:It seems like the requirements needed to become an
       | investor in a startup is a multimillion pool of money...which is
       | not what a salaried professional has at their disposal. Yet, a
       | lot of the 100x opportunities come before public offerings,
       | making a whole class of investment unavailable to modest but
       | knowledgeable professionals. I know that sometimes, through
       | personal connections, pools of investment money are built across
       | individuals, but as a public service it seems like, no, it is
       | not.
        
       | jimmySixDOF wrote:
       | I remember listening to Dr Robert Martin who was leading Bell
       | Labs in the late 90s and he talked about how the bandwidth
       | capacity was pushing to infinity while cost per bit was pushing
       | towards zero and we all know how that ended for the optical
       | capacity builders of that time before the bubble popped. Is there
       | a case for intelligence being inexhaustible to demand ? Is there
       | a case for, as Sama says, the cost for intelligence as in input
       | to a system converges with the price of electricity needed to
       | power the gpu behind it in the daya center? Yes and yes. Still
       | the same could be said for a bit of bandwidth.
        
         | dangerwill wrote:
         | Generated text =! Intelligence.
        
         | torginus wrote:
         | I am very skeptical of the positive effects of infite
         | intelligence on the living standards of knowledge workes.
         | 
         | On the more pessimistic end, AI will replace us and we'll be
         | sent to the coal mines.
         | 
         | On the possibly most optimistic end, living standards are a
         | composite of many things rooted in reality, so I'd say the
         | actual cap is about doubling of life quality, which is not
         | nothing, but not unprecendented if we look at the past century
         | and a half.
        
       | joshdavham wrote:
       | I'm curious how this will affect cloud costs for the rest of us.
       | On the one hand, we may get some economies of scale, but on the
       | other hand, cloud resources being used up by others may drive
       | prices up. Does anyone have any guesses as to what will happen?
        
         | aurareturn wrote:
         | I doubt it will increase cost for traditional CPU-based clouds.
         | Just take a look at Ampere 192 core and AMD 196 core CPUs.
         | Their efficiency will continue to drive down traditional cloud
         | $/perf.
        
       | GolfPopper wrote:
       | I've yet to find an "AI" that doesn't seamlessly hallucinate, and
       | I don't see how "AIs" that hallucinate will ever be useful
       | outside niche applications.
        
         | Ekaros wrote:
         | I believe that there is lot of content creation where quality
         | really does not matter. And hallucinations don't really matter.
         | Unless they are legally actionable, that is something like hate
         | speech or libel.
         | 
         | Throwing dozens of articles, social media posts and why not
         | even videos. Hallucinations really don't matter at scale. And
         | enough content is already generating enough views to make it
         | somewhat viable strategy.
        
         | dragonwriter wrote:
         | Humans also confabulate (a better metaphor for AI errors than
         | hallucination) when called on to respond without access to the
         | ground truth, and most AI models have limited combination of
         | access and ability to use that access when it comes to checking
         | ground truth.
        
         | edanm wrote:
         | You don't really need to imagine this though - generative AI is
         | _already_ extremely useful in many non-nice applications.
        
         | zone411 wrote:
         | Confabulations are decreasing with newer models. I tested
         | confabulations based on provided documents (relevant for RAG)
         | here: https://github.com/lechmazur/confabulations/. Note the
         | significant difference between GPT-4 Turbo and GPT-4o.
        
         | sean_pedersen wrote:
         | https://github.com/stanford-oval/WikiChat
        
       | openrisk wrote:
       | There is an interesting contrast between the phenomenal
       | investment boom versus functionally zero job growth...
       | 
       | > Even the software publishers and computing infrastructure
       | industries at the forefront of this AI boom have seen
       | functionally zero net employment growth over the last year - the
       | dismal job market that has beleaguered recent computer science
       | graduates simply has not improved much.
       | 
       | ... which may explain, in broad brush, the polarised HN attitude:
       | bitter cynics on one side and aggresive zealots on the other.
        
       | m101 wrote:
       | There is a comment on this thread about this being like the
       | railroads, but this is nothing like the railroads except insofar
       | as it costs a lot of money.
       | 
       | The railroads have lasted decades and will remain relevant for
       | many more decades. They slowly wear out, and they are the most
       | efficient form of land transport.
       | 
       | These hardware investments will all be written off in 6 years
       | time and won't be worth running given the power costs and
       | relative output. They will be junked.
       | 
       | There's also the extra risk that for some reason future AI
       | systems just don't run efficiently on current gen hardware.
        
         | tim333 wrote:
         | Some stuff like the buildings and power supplies will probably
         | remain good. But year, probably new chips in a short while.
        
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