NVIDIA and its CEO Jensen Huang launched a new initiative last week that sees the company’s graphics cards effectively being treated as a separate asset class, akin to a financial instrument.
David Sachs, Donald Trump’s technology adviser and a member of the President’s Council on Science and Technology, spoke on the All-In podcast about the major threats to the massive growth of artificial intelligence and NVIDIA’s new financial model. In his view, the problem is not the demand for computing power, but the risk of over-producing computing power.
Sachs pointed out that the significant increase in investment in data centers by technology companies may lead to a situation where the supply of computing resources is significantly higher than actual demand. He compared the potential impact to the glut of “dark fiber” after the dot-com bubble burst. The consultant said a similar glut of unused GPUs will become a major problem for the entire industry. This will be especially painful for those who build infrastructure based on high computing costs (Musk has previously said $30-50 per watt).
How long do you think the race for AI advancement will last?
