2026 May 05
- What Sort of AI Bubble Are We In? - “One of the major reasons why existing data centers cannot keep up with the computational demand is that the AI industry is not the least bit interested in pursuing efficiencies that would make their products less computationally demanding. They’ve constructed a sort of financial flywheel, where they subsidize computation-heavy behavior from users, then report back to investors about the soaring product demand and use it to justify the next investment round. If they built more efficient AI models, then it would paradoxically become harder to attract the next trillion dollars of investor cash.”