Post #1178564

2026-04-03 16:14 UTC

> Think about the dotcom bubble. We went from having all of these businesses that shot to the moon for valuation… and then it collapsed. Amazon and Google and basically all of FAANG/MAMA beg to differ. And basically every company still has a website and ecommerce in general is still massive. The Dot Com bubble was brutal. But it was not a collapse of the industry. It was much more of a correction after so many companies blew up to sell services like "rate my dog" and many of the smaller ecommerce sites were absorbed by larger ones. And that is likely what will happen with generative AI. I expect a MUCH bigger bloodbath for openai but anthropic seem to have scaled a lot better (although they also are going into their IPO with a massive data breach...). But expect most of the smaller companies to similarly get gutted. But > Makes sense. It takes years to complete construction projects and budgets always overrun. AI is a fad for most companies trying to get into it. Data Centers exploding... honestly have little to do with AI. No... not the way they explode in the UAE... metaphorical exploding. The reality is that data centers are GOOD money. Basically every company needs data hosting and offloading internal infrastructure is... honestly a really smart play. Same with the massive push for streaming of basically everything so that nobody owns anything and subscribe to everything. You want regional data centers and... this is how you get them.

Replies (6)

@EncryptKeeper@lemmy.world 2026-04-03 17:08

>Amazon and Google and basically all of FAANG/MAMA beg to differ. >But it was not a collapse of the industry. I mean they don’t beg to differ at all and it absolutely collapsed. The result of which is the reason why FAANG as an acronym exists. FAANG is the resulting consolidation of the industry made possible by its widespread collapse.

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@CorrectAlias@piefed.blahaj.zone 2026-04-03 21:50

Their comment literally mentions Google and Facebook as the survivors, so I'm not sure what good it does to include them in your argument.

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@XLE@piefed.social 2026-04-03 16:54

Data centers existing makes sense, but this specific aggressive AI data center buildout (with special-purpose hardware) doesn't: the two AI companies you mentioned, OpenAI and Anthropic, aren't making a profit, and they don't appear to have a viable path to one. OpenAI claims it'll be wildly profitable in just a few years, but they don't go into how.

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@jj4211@lemmy.world 2026-04-03 21:41

On the FAANG/MAAMA, he said explicitly some winners but a whole lot of losers, so you are agreeing with him. Of those titans, only Amazon and Google were arguably dot com darlings. Apple was pretty much left out of it and in bad shape, Microsoft did "ok" but was not really a darling of that bubble. Facebook, Netflix didn't exist. The data center explosion has *everything* to do with the AI boom. That's the only change around the recent inflection point of growth. They were certainly prolific, but this is beyond. They are now demanding incredibly more power and cooling density than before. OpenAI by itself made purchasing commitments to the tune of 40 percent of the entire supply of ram production across all industries. Probably 75 to 80 percent of the recent plans would not have happened if not for the LLM craze.

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@ChicoSuave@lemmy.world 2026-04-03 19:19

FAANG exists because they have rock solid products with built in users. Their new business initiatives and decisions are woefully lacking. The new ideas aren't bubbling up. Nvidia is the only one that isn't staring into the abyss but their only products are iterative and once something revolutionary comes along they are sunk, like AMD v Intel these last 5 years. Don't think FAANG is a leader of anything except valuation. They are hopeless business leaders.

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@blueworld@piefed.world 2026-04-04 05:36

Nice eval and analysis. I am finding it more and more obnoxious that lemmy doesn't seem to like true debate. Take the down votes as a good sign that you struck a possible cord of reality.

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