Noah Smith Warns of AI Data Center Boom’s Bubble Risks
3 Articles
3 Articles
Artificial Intelligence is attracting unusual investments, far greater than we really believe, so there is a question that is beginning to take hold in certain financial circles: aren't they digging the same hole that led to the collapse of other big bubbles of the past? Is this AI bubble going straight to an unprecedented economic crisis? Because there are positions that are already warning, and data are not missing, because the hardware and in…
[Digital Daily Reporter Kim Moon-ki] A somewhat negative perspective is gaining attention regarding the US economy and AI infrastructure investment. While AI is a clear trend, its profitability is uncertain despite its attractive appearance. This perspective raises concerns about the so-called "AI infrastructure bubble." For example, major Big Tech companies such as Microsoft, Amazon, Meta, Alphabet, and Oracle are accelerating the transition to…
Noah Smith Warns of AI Data Center Boom’s Bubble Risks
As the artificial-intelligence boom accelerates, data centers have emerged as the unsung heroes powering everything from cloud computing to machine learning. But beneath the surface of this rapid expansion lies a potential economic vulnerability that could ripple through financial markets. In a recent analysis, economist Noah Smith warns that the frenzy to build these facilities might be setting the stage for a crisis, drawing parallels to past …
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