Yep, that is what the bet is. The build out will continue, even if it looks different.

The Internet was a 'bubble' at one point, and after it crashed in 2000, it didn't go away, it continued to build out. We're still using the Internet after the Internet bubble popped.

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hajile 31 minutes ago | parent [-]

On a $100B AI datacenter, some 60-70% of the center needs to be replaced every 2-6 years. These companies claim the hardware lasts 6 years while simultaneously claiming they are relying on new hardware to lower inference costs (implying much more frequent updates).

Over 40 years, that's 7-20 hardware changes, that turns into between $420B and $1.4T of ongoing investment (not accounting for inflation). The $30B that is called "infrastructure" only accounts for 2-7% of the overall bill.

This is NOTHING like fiber buildouts because the fiber lasts the whole 40 years with ZERO replacements and very close to 100% of the cost is infrastructure rather than a tiny percentage.

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FrustratedMonky 25 minutes ago | parent [-]

I've been through several network upgrades. You are saying the fiber in the ground lasts a long time, but all the equipment on either end gets replaced every ~5 years. I agree this build out seems pretty crazy, but people were saying the same thing with the internet. Arguing if the equipment has a replacement rate of 2-6 years or 30-40 years, I think isn't the part that makes this a bubble.

	▲	kibwen 17 minutes ago \| parent [-]
		For fiber, the main costs were not the fiber itself, but acquiring the rights to lay the fiber and the labor to do so. The equipment at either end has a lifespan of somewhat less that 50 years, but that's a minor cost. Conversely, for the data centers we're talking about, the cost of the things that need replacing every five years is one of the primary costs.