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A comment on IBM CEO says there is 'no way' spending on AI data centers will pay off. Parent comment

Re:IBM CEO says there is 'no way' spending on AI data center... by cjonas on Tuesday December 02, 2025 @11:30PM (#46130321)
I think it's a bit different because a rental car generates direct revenue that covers its cost. These GPU data centers are being used to train models (which themselves quickly become obsolete) and provide inference at a loss. Nothing in the current chain is profitable except selling the GPUs.
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Re:IBM CEO says there is 'no way' spending on AI data center... by sho on Wednesday December 03, 2025 @01:08AM (#46130791)
> and provide inference at a loss

You say this like it's some sort of established fact. My understanding is the exact opposite and that inference is plenty profitable - the reason the companies are perpetually in the red is that they're always heavily investing in the next, larger generation.

I'm not Anthropic's CFO so i can't really prove who's right one way or the other, but I will note that your version relies on everyone involved being really, really stupid.

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Re:IBM CEO says there is 'no way' spending on AI data center... by elktown on Wednesday December 03, 2025 @02:42AM (#46131336)
“like it's some sort of established fact” -> “My understanding”?! a.k.a pure speculation. Some of you AI fans really need to read your posts out loud before posting them.
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Re:IBM CEO says there is 'no way' spending on AI data center... by teodosin on Wednesday December 03, 2025 @03:18AM (#46131603)
You misread the literal first snippet you quoted. There's no contradiction in what you replied to.
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Re:IBM CEO says there is 'no way' spending on AI data center... by elktown on Wednesday December 03, 2025 @04:18AM (#46132202)
No?
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Re:IBM CEO says there is 'no way' spending on AI data center... by darkwater on Wednesday December 03, 2025 @02:12AM (#46131127)
The current generation of today was the next generation of yesterday. So, unless the services sold on inference can cover the cost of inference + training AND gain money, they are still operating at loss.
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Re:IBM CEO says there is 'no way' spending on AI data center... by rvba on Wednesday December 03, 2025 @03:47AM (#46131946)
Or just "everyone" being greedy
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