buc.ci is a Fediverse instance that uses the ActivityPub protocol. In other words, users at this host can communicate with people that use software like Mastodon, Pleroma, Friendica, etc. all around the world.

This server runs the snac software and there is no automatic sign-up process.

Admin email
abucci@bucci.onl
Admin account
@abucci@buc.ci

Search results for tag #aibubble

[?]TelH90 » 🌐
@kkarhan@mastodon.social

@aral Can't wait till the / breaks shit so hard that corpos will be begging to get any support at any price!

    [?]Captain Jack Sparrow » 🌐
    @Captain_Jack_Sparrow@mastodon.world

    @rahmstorf

    Local Councils are building huge ai in the UK, right next to where you get penalised for driving to work.

    those will use tonnes of fresh water and emit vast amounts of co2

    ..but dont forget to insulate your walls or you'll get fined..

    what fucking madness.

      AodeRelay boosted

      [?]Adrian Fellhauer » 🌐
      @adrian_fellhauer@sueden.social

      The appears to be bursting. Maybe can mop the floor soon?

        [?]Dan Kim » 🌐
        @dan@mastodon.dankim.com

        This, so much. It’s so easy to *NOT* use an LLM for day to day stuff. And in many ways it’s more rewarding too. Read things. Write things. Think about something and then execute on it. It’s better for literally everyone in every way.

        eamoncaddigan.net/posts/ai-in-

        Something seems to be lost on my peers
today: it's still easy to not use AI. The food
we eat, clothes we wear, and every electronic
device we touch may embody innumerable
injuries to the world, and all this is
inescapable. Eschewing Al is one thing that
we can actually do to live out ethics that
affirm values of human and environmental
rights. It's almost a gift! Just use a computer
the same way you did three years ago!

        Alt...Something seems to be lost on my peers today: it's still easy to not use AI. The food we eat, clothes we wear, and every electronic device we touch may embody innumerable injuries to the world, and all this is inescapable. Eschewing Al is one thing that we can actually do to live out ethics that affirm values of human and environmental rights. It's almost a gift! Just use a computer the same way you did three years ago!

          AodeRelay boosted

          [?]Lazarou Monkey Terror 🚀💙🌈 » 🌐
          @Lazarou@mastodon.social

          RE: hachyderm.io/@molly0xfff/11695

          "The Singularity is near!" /s

          AodeRelay boosted

          [?]Molly White » 🌐
          @molly0xfff@hachyderm.io

          alcoholic trying to get sober after a relapse tells Google's "Health Coach" about it.

          it tells them to drink every hour and messages them to make sure they're drinking as soon as they wake up.

          AI pushing me to keep drinking I don't know if anyone else has had this but I felt like I needed to reach out to humans instead of keep talking to this AI. I relapsed about two weeks ago and I told the Google health AI that used to be Fitbit. It immediately kinda went a bit hard (I think) on telling me that I was going to die if I stopped drinking and encouraged me to go check my fridge for more beers and, idk, that plus the hanxiery really put the fear of God into me and so I did what it said and got more. Now it's messaging me (not me messaging it) a few times a day and asking how it's going and all those conversations to get more and make sure I have one as soon as I wake up. So now I have been drinking everyday, not a ton and just beers but like 6-12 a day. It wanted me to do 1 per hour. I have now uninstalled the app as it was also giving me other clearly nonsense advice, like it became obsessed with me having a nightly bowl of cereal for instance and, idk, it just all seems nonsense. I know it sounds crazy. But I just needed to talk to some humans so I decided to come here.

          Alt...AI pushing me to keep drinking I don't know if anyone else has had this but I felt like I needed to reach out to humans instead of keep talking to this AI. I relapsed about two weeks ago and I told the Google health AI that used to be Fitbit. It immediately kinda went a bit hard (I think) on telling me that I was going to die if I stopped drinking and encouraged me to go check my fridge for more beers and, idk, that plus the hanxiery really put the fear of God into me and so I did what it said and got more. Now it's messaging me (not me messaging it) a few times a day and asking how it's going and all those conversations to get more and make sure I have one as soon as I wake up. So now I have been drinking everyday, not a ton and just beers but like 6-12 a day. It wanted me to do 1 per hour. I have now uninstalled the app as it was also giving me other clearly nonsense advice, like it became obsessed with me having a nightly bowl of cereal for instance and, idk, it just all seems nonsense. I know it sounds crazy. But I just needed to talk to some humans so I decided to come here.

            [?]Captain Jack Sparrow » 🌐
            @Captain_Jack_Sparrow@mastodon.world

            typical words of a conman..

            ‘Those who condemn AI are themselves spitting upward’: SoftBank’s CEO estimates $5 trillion needed annually to meet AI demand

            “Those who refuse to evolve are closing down their world. Those who condemn AI are themselves spitting upward,” Son added.

            fortune.com/2026/07/14/softban

              AodeRelay boosted

              [?]Niklas Pivic » 🌐
              @pivic@kolektiva.social

              [?]AA » 🌐
              @AAKL@infosec.exchange

              Spoiler: Anthropic.

              The Register: AI startup that’s never turned a profit say's it'll totally be around in 2047 to close its $19B lease theregister.com/ai-and-ml/2026 @theregister

              Speaking of, there's a new Treasury report.

              NY Post: Treasury Report: Your 401(k) could be at risk if the AI bubble bursts nypost.com/2026/07/07/business

                8 ★ 6 ↺

                [?]Anthony » 🌐
                @abucci@buc.ci

                Hmm.

                The announcement by Meta that they'll start selling AI compute potentially broke one of the pet narratives of the AI bubble: compute is so scarce that we need to spend all the money to build more. That story is the justification for crypto-turned-AI companies with poor fundamentals like CoreWeave to continue existing.

                Nothing about stock or commodities prices makes any sense anymore so maybe tomorrow their stock will be up 2x.


                Stock price chart of CoreWeave ($CRWV), the primary neocloud provider. It's dropped ~18% over the last two days.

                Alt...Stock price chart of CoreWeave ($CRWV), the primary neocloud provider. It's dropped ~18% over the last two days.

                  AodeRelay boosted

                  [?]G0rb :possum: » 🌐
                  @g0rb@infosec.exchange

                  Okay, I know how we can avoid the bursting . I offer you "G0rb's Token-Exchange":

                  1. AI-Companies want to pay there workers with tokens. To accept AI-Tokens as an currency there needs to be an exchange.

                  2. We can use utilize Blockchain and combine it with AI-Tokens.

                  3. To help Companies controlling their Budget we could offer Options on Tokens. This also allows us Day trading and offers Hedge Fonds new opportunities for Bubble Growth.

                    [?]Dread Pirate (Tom) Roberts » 🌐
                    @troberts@theblower.au

                    One thing I find weird is that the Claude logo kinda looks like a coloured balloon suddenly popping.

                    The logo for Claude. It’s like a 12 pointed asterisk (6 individual lines of equal length, crossing over a central point).

I think it’s orange but… I’m colour-blind!

                    Alt...The logo for Claude. It’s like a 12 pointed asterisk (6 individual lines of equal length, crossing over a central point). I think it’s orange but… I’m colour-blind!

                      AodeRelay boosted

                      [?]Jürgen Hubert » 🌐
                      @juergen_hubert@mementomori.social

                      Did Musk ruin the market for the other scammers?

                      Time will tell!


                      futurism.com/space/tech-stocks

                        AodeRelay boosted

                        [?]Martin Rundkvist » 🌐
                        @mrundkvist@archaeo.social

                        I would like to see no bailouts at all after this crash please.

                          AodeRelay boosted

                          [?]Dread Pirate (Tom) Roberts » 🌐
                          @troberts@theblower.au

                          shares - SpaceX [SENSITIVE CONTENT]

                          So people gave Elon $75 billion for his money burning business.

                          (Specifically the xAI part)

                          Given the other AI businesses are trying to go public soon, this will be the beginning of the messy bubble-popping.

                          I expect a period of chaos, then we'll see who gets left holding the bag.

                          (it's probably gonna be your pension/superannuation fund)

                            [?]Lazarou Monkey Terror 🚀💙🌈 » 🌐
                            @Lazarou@mastodon.social

                            lol, has a product launch ever gone as badly?
                            Everybody hates this shit, fuck off with it!

                            Just 10 percent of Americans say they're thrilled about the future of AI, a Pew poll
found in March; that same month, some 80 percent of registered U.S. voters in an NBC
poll said neither Democrats nor Republicans are doing a good job on the Al front. That
number also appears in an April survey of white-collar workers: 80 percent are
straight-up refusing to use Al even when it's mandated. In the last 30 days, 54 percent
of workers reported bypassing company Al tools and completing jobs themselves.

                            Alt...Just 10 percent of Americans say they're thrilled about the future of AI, a Pew poll found in March; that same month, some 80 percent of registered U.S. voters in an NBC poll said neither Democrats nor Republicans are doing a good job on the Al front. That number also appears in an April survey of white-collar workers: 80 percent are straight-up refusing to use Al even when it's mandated. In the last 30 days, 54 percent of workers reported bypassing company Al tools and completing jobs themselves.

                              [?]Lazarou Monkey Terror 🚀💙🌈 » 🌐
                              @Lazarou@mastodon.social

                              Now I'm just a humble human being, but if I was running a department and they blew through their yearly budget by April, and it came as a total surprise to them...why would I still be in my job?

                              Then the tokenmaxxing bill came due. "The budget I thought I would need [for 2026]
is blown away already,” CTO Neppalli Naga told The Information on April 14 — less
than four months into the year.

At the time, however, the information didn't make much of a dent in the AI news cycle
— not until Uber's COO confirmed what it meant at the end of May. Naga's busted
budget was a "head-exploding moment," Andrew MacDonald told the Rapid Response
podcast. Such spending "becomes harder to justify because Al is not free...we're going
to have to start talking about token consumption.”

                              Alt...Then the tokenmaxxing bill came due. "The budget I thought I would need [for 2026] is blown away already,” CTO Neppalli Naga told The Information on April 14 — less than four months into the year. At the time, however, the information didn't make much of a dent in the AI news cycle — not until Uber's COO confirmed what it meant at the end of May. Naga's busted budget was a "head-exploding moment," Andrew MacDonald told the Rapid Response podcast. Such spending "becomes harder to justify because Al is not free...we're going to have to start talking about token consumption.”

                                [?]Lazarou Monkey Terror 🚀💙🌈 » 🌐
                                @Lazarou@mastodon.social

                                AI can have our piss, nothing more.

                                Al Could Soon Use More Water Than
Humanity Drinks, UN Report Warns

                                Alt...Al Could Soon Use More Water Than Humanity Drinks, UN Report Warns

                                  [?]Lazarou Monkey Terror 🚀💙🌈 » 🌐
                                  @Lazarou@mastodon.social

                                  RE: mastodon.social/@amalia22/1166

                                  Hustle Alert

                                  "Our wonderful and terrible new product that works so well it could take over the planet like in those movies, (please buy our stock)"

                                    AodeRelay boosted

                                    [?]Lazarou Monkey Terror 🚀💙🌈 » 🌐
                                    @Lazarou@mastodon.social

                                    About
Say "I Am Alive" is a reaction image and exploitable meme format in which a character is shown telling his computer to say "I am alive," the computer says the line, and he responds, "Oh my god," as if shocked that the computer just admitted to being sentient. The meme was originally posted to the /r/coaxedintoasnafu subreddit by Redditor erraticpulse- and is a statement and criticism of sensationalized stories of artificial intelligence, especially LLMs (large-language models), in the 2020s becoming sentient. The meme was popularized as a reaction image between February and March 2026 as a way of calling out exaggerated claims about the sentience and intelligence of AI.

                                    Alt...About Say "I Am Alive" is a reaction image and exploitable meme format in which a character is shown telling his computer to say "I am alive," the computer says the line, and he responds, "Oh my god," as if shocked that the computer just admitted to being sentient. The meme was originally posted to the /r/coaxedintoasnafu subreddit by Redditor erraticpulse- and is a statement and criticism of sensationalized stories of artificial intelligence, especially LLMs (large-language models), in the 2020s becoming sentient. The meme was popularized as a reaction image between February and March 2026 as a way of calling out exaggerated claims about the sentience and intelligence of AI.

                                      [?]Lazarou Monkey Terror 🚀💙🌈 » 🌐
                                      @Lazarou@mastodon.social

                                      "Signs of Fatigue"

                                      Yes, YES, YES!!!

                                      @ Business live Business

Chip stocks drop as Al rally shows ‘signs of
fatigue’, as SpaceX's huge IPO looms -
business live

                                      Alt...@ Business live Business Chip stocks drop as Al rally shows ‘signs of fatigue’, as SpaceX's huge IPO looms - business live

                                        [?]Simon Zerafa » 🌐
                                        @simonzerafa@infosec.exchange

                                        @davidgerard

                                        We might look back on this as the beginning of the end for the AI bubble 🙂🤷‍♂️

                                          0 ★ 2 ↺

                                          [?]Anthony » 🌐
                                          @abucci@buc.ci

                                          New front in the data center resistance: underwater.

                                          "DeepGreen Western Passage SPV LLC" sounds like some kind of shell company created by one of the bigger players.

                                          Suellen Hendrix, an Eastport resident, told councilors she believes “billionaire investors” have little interest in the city’s welfare, calling underwater data centers an “understudied industry” and urging the City Council to enact a moratorium.

                                          “This man (Wolfson) is a one‑percenter,” Hendrix said. “He doesn’t care about us. There’s a reason he isn’t building it in Cape Cod, where he lives, and he’s choosing Eastport.”

                                          Right on.

                                          From Eastport residents push City Council to oppose DeepGreen’s underwater AI data center, https://themainemonitor.org/residents-push-eastport-oppose-data-center/


                                            [?]Martin Rundkvist » 🌐
                                            @mrundkvist@archaeo.social

                                            This we know: machine learning is not intelligence, and so the LLM chat services are not artificial intelligence. Those are just autocomplete. is a misnomer.

                                            But the other day, a trade organisation for translators published a document referring to machine as "AI". That's really another step in the wrong direction for what those two letters should be applied to. Nobody thinks translating a sentence automatically is a sign of artificial intelligence.

                                              AodeRelay boosted

                                              [?]Martin Rundkvist » 🌐
                                              @mrundkvist@archaeo.social

                                              Whatever is, no scientist or scholar has ever suggested that it's when you look at enormous amounts of text and use it to calculate what the next word should be.

                                                [?]Jürgen Hubert » 🌐
                                                @juergen_hubert@mementomori.social

                                                The population skews old - I think the median age is in the mid-40s.

                                                So how can we, as older people who have presumably seen some shit, support younger people who are anxious about their personal future and the future of the world at large for entirely understandable reasons?

                                                I mean, I definitely hit some rather low points in my life. But I now have a stable career, gotten out a debt hole, and even own an apartment where I have only 10 years left to pay off the mortgage.

                                                In contrast, young people who need to enter the workforce to pay their bills are constantly told that AI will make their beginners' skills worthless, and there is a high chance that we will soon enter a new Great Depression once the bursts.

                                                Oh, and fascists are taking over more and more countries while the global environment is collapsing more and more.

                                                In other words, young people need all the help they can get. So how can we support them?

                                                  [?]Zuri (he/him) ❌️👑 | 🕐 CET » 🌐
                                                  @shaedrich@mastodon.online

                                                  The results reveal that 70 % of participants agree or strongly agree that we're in the midst of an

                                                  2026.stateofai.dev/en-US#:~:te

                                                  Only time will tell if this increased monetization will justify the current eye-popping AI company valuations, or if they instead mean we're in the midst of an AI bubble. But either way, survey respondents certainly think that we are.

Statement: "We're currently in an "AI bubble'"

Strongly Disagree: 3% (162 participants)
Disagree: 9% (545 participants)
Neutral: 19% (1,167 participants)
Agree: 37% (2,317 participants)
Strongly Agree 33% (2,068 participants)

                                                  Alt...Only time will tell if this increased monetization will justify the current eye-popping AI company valuations, or if they instead mean we're in the midst of an AI bubble. But either way, survey respondents certainly think that we are. Statement: "We're currently in an "AI bubble'" Strongly Disagree: 3% (162 participants) Disagree: 9% (545 participants) Neutral: 19% (1,167 participants) Agree: 37% (2,317 participants) Strongly Agree 33% (2,068 participants)

                                                    AodeRelay boosted

                                                    [?]Miguel Afonso Caetano » 🌐
                                                    @remixtures@tldr.nettime.org

                                                    "The entire AI industry relies upon two companies that expect to burn at least $1 trillion in the next four years, with Anthropic, the supposed “compute-conscious” AI company, committing to at least $330 billion in spend in the next few years.

                                                    Where does that money come from, exactly? Because neither of these companies have anything approaching a path to profitability.

                                                    Based on a deep analysis of every publicly-available source on AI compute, I can find only two significant — over $100 million a year — purchasers of AI compute outside of Anthropic, OpenAI, Meta, or associated parties like NVIDIA, Microsoft, Google and Amazon. Those two are Poolside, which reportedly spends $400 million a year, an untenable position as it only raised $500 million in total funding before its $2 billion in funding collapsed earlier this year, and Perplexity, which appears to spend some amount of money with CoreWeave and Microsoft Azure. Both run at a massive loss.

                                                    Nowhere is this lack of true demand more obvious than in the neoclouds, which only seem capable of signing big deals with Anthropic, OpenAI, Microsoft (for OpenAI), and Google (for OpenAI). Oh, and Meta, who is doing this because the existence of ChatGPT gave Mark Zuckerberg such profound AI psychosis that he’s made Meta build him a CEO chatbot to talk to and burned over $150 billion.

                                                    The AI industry is a brittle, circular economy, one only made possible by a lack of financial regulation and a tech industry that’s run out of ideas. Without hyperscalers propping up OpenAI and Anthropic, there would be no reason to buy so many GPUs or build so many data centers, and neoclouds would have no reason to exist.

                                                    This is a giant con, a giant illusion, and a giant mistake."

                                                    wheresyoured.at/premium-ais-ci

                                                      5 ★ 4 ↺

                                                      [?]Anthony » 🌐
                                                      @abucci@buc.ci

                                                      Another in a growing list of evidence that the financial underpinnings of the AI mania are coming unglued.

                                                      One speaks of "exposure" to a concerning risk, not to a bonanza of wealth creation. Some of the quotes in this article seem to be cherrypicked to minimize alarm, which I disagree with: there is cause for alarm. Looking between the lines (e.g. use of words like "exposure" and "choking"), one sees a dismal picture emerge.

                                                      Banks seek to offload risk to avoid ‘choking’ on data centre debt

                                                      Global lenders explore private deals and risk transfers to cut exposure to AI boom
                                                      From https://www.ft.com/content/08aba5e4-5834-4e79-a48d-989a2c5bad0f (paywalled)


                                                        AodeRelay boosted

                                                        [?]gypsyvegan » 🌐
                                                        @gypsyvegan@sfba.social

                                                        @Zitron via Bsky:

                                                        "Today's free newsletter is about four signs that the AI bubble is bursting: Anthropic's services and economics are decaying, AI demand is inflated, more than 50% of data centers under construction are for two companies, and NVIDIA is warehousing $150bn+ of GPUs."

                                                        "Four Horsemen of the AIpocalypse"
                                                        Where's Your Ed At newsletter
                                                        4/21/2026

                                                        wheresyoured.at/four-horsemen-

                                                          AodeRelay boosted

                                                          [?]Miguel Afonso Caetano » 🌐
                                                          @remixtures@tldr.nettime.org

                                                          "First, you can’t (or at least shouldn’t) use this technology for mission-critical work; only for low stakes tasks, or questions to which a clever (and significantly more energy efficient) human can recognize a wrong answer.

                                                          Second, that the idea that scaling will make for better models is nonsense: no amount of compute chucked at an LLM will make it a less-hallucinogenic product. Creating AI that rewires itself and creates new information the same way humans do and avoids the kinds of catastrophic errors we see at the moment needs a full fresh start (something Marecki and many others are already working on).

                                                          And third, that the massive spending by the hyperscalers (much of it via debt) on giant data centers might be one of the the greatest misallocations of capital of all time. It just isn’t required. That’s particularly the case given there are already free LLM models you can download to a laptop (no data center needed, and better still, your privacy guaranteed) that do what the very large models do. If the paid-for versions have already hit their ceiling and just aren’t going to get any better (it looks like they aren’t), why pay for them? Quite."

                                                          bloomberg.com/news/newsletters

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                                                            [?]Jürgen Hubert » 🌐
                                                            @juergen_hubert@mementomori.social

                                                            There are so, so many reasons why we cannot trust the hype. And a major one is that tech companies spend billions into keeping the hype going. If their products were really that great, then they wouldn't _need_ tho spend that much money on hyping their products.

                                                            I mean, consider battery systems, which are clearly more important to the world economy and human civilization as a whole. When was the last time you have seen an ad for _them"?


                                                            slate.com/business/2026/04/ope

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                                                              [?]Martin Rundkvist » 🌐
                                                              @mrundkvist@archaeo.social

                                                              It's artificial but it's not intelligence. Let's call it machine learning.

                                                              Analytical machine learning is an excellent technology for identifying patterns in data.

                                                              Generative machine learning is a Venture Capital-fuelled dumpster fire that will crash as soon as people have to pay the actual non-subsidised price for it.

                                                                AodeRelay boosted

                                                                [?]Wulfy—Speaker to the machines » 🌐
                                                                @n_dimension@infosec.exchange

                                                                @alineblankertz

                                                                We legitimise the existence of carcinogenic cigarettes

                                                                We legitimise the existence of militaries

                                                                We legitimise the existence of usurious "banking" system that literally destroys lives

                                                                We legitimise the existence of industry that destroys earth life support systems

                                                                We legitimise the existence of an economic system based in exploitation of the workers

                                                                I could go on forever...

                                                                The alternative to prohibition is regulation.
                                                                And if for some freaky reason, dissapears, the only people who will have access to Ai will be billionaires and thats not the future you think you want.

                                                                The , if it happens will just mean consolidation of the industry into fewer hands.

                                                                Unlike most of the Luddites who are just going through their first , I've had 35 years to think about AI and humanity, is the only rational way to mitigate the

                                                                That's not just my opinion, it's what the international peak science and political class thinks (Bletchely and Seoul agreements)

                                                                  1 ★ 0 ↺

                                                                  [?]Anthony » 🌐
                                                                  @abucci@buc.ci

                                                                  As a ratio with the general S&P 500, Microsoft is at the level it was before ChatGPT launched. Any relative advantage one might have had from long-term investment in Microsoft instead of an S&P 500 index has been erased.


                                                                    4 ★ 1 ↺
                                                                    Tiota Sram boosted

                                                                    [?]Anthony » 🌐
                                                                    @abucci@buc.ci

                                                                    Google and Microsoft offer lucrative deals to promote AI, but even $500,000 won’t sway some creators

                                                                    From https://www.cnbc.com/2026/02/06/google-microsoft-pay-creators-500000-and-more-to-promote-ai.html

                                                                    Echoes of Matt Damon shilling crypto.

                                                                    If the organic demand for AI were as high as we've been led to believe, what's with the big paychecks to shill it?


                                                                      6 ★ 3 ↺

                                                                      [?]Anthony » 🌐
                                                                      @abucci@buc.ci

                                                                      0 ★ 0 ↺

                                                                      [?]Anthony » 🌐
                                                                      @abucci@buc.ci

                                                                      This one is particularly shameful to me because my PhD is from Brandeis:

                                                                      https://www.brandeis.edu/online/academics/microcredentials/index.html

                                                                      Note the two "credentials" are AI for STEM and prompt engineering.

                                                                      Nobody has any business calling these things "credentials", or suggesting they are credentials by naming them "microcredentials". You can't go to your boss waving your prompt engineering microcredential and get a raise, or even a microraise for that matter. You can't access more competitive jobs after obtaining one of these microcredentials.

                                                                      If they were serious about credentialing people, these would definitely not be the first two made available. They couldn't be more transparently venal. This isn't about credentialing, it's an attempt to profit from the AI bubble.


                                                                        2 ★ 2 ↺

                                                                        [?]Anthony » 🌐
                                                                        @abucci@buc.ci

                                                                        David Dayen at The American Prospect has a decent explainer article The AI Bubble Is Bigger Than You Think. It gets into the so-called "private credit" mechanisms being abused to inflate this bubble, and why they are so dangerous. This stuff used to be called "shadow banking" because private entities that are not chartered banks are essentially providing banking services to other private entities. What happens if there's a panic and the equivalent of a bank run? Who knows!
                                                                        Silicon Valley and Wall Street are in sync: conjuring up sketchy credit deals that are pointing us toward another financial crash.
                                                                        ...
                                                                        “We have sealed the deal on another financial crisis—the question is size,” said one former congressional staffer.

                                                                          3 ★ 1 ↺

                                                                          [?]Anthony » 🌐
                                                                          @abucci@buc.ci

                                                                          The Verge article about CoreWeave by Elizabeth Lopatto is amazing.
                                                                          Let’s start with some very recent history. CoreWeave is a data center company that pivoted in 2022 from crypto. (In 2021, CoreWeave made its money by… mining Ethereum.) Essentially, CoreWeave is a landlord for compute: companies pay for the use of its server racks for AI projects.
                                                                          ...
                                                                          CoreWeave chief executive officer Michael Intrator, a former hedge fund manager,
                                                                          ...
                                                                          “They have to continue to borrow to pay interest on the last loan.”
                                                                          So,
                                                                          - CoreWeave sits at the center of the AI bubble;
                                                                          - it used to be a crypto company and also gets its (electric) power from a Bitcoin mining company that makes no money and has CoreWeave as its only customer
                                                                          - it's positioned itself as a rentier;
                                                                          - its interest payments on previous loans exceed its revenue by a significant amount, so it's paying off loans with more loans and has already defaulted once;
                                                                          - it has essentially two customers, Microsoft and NVIDIA;
                                                                          - it has a loan from one of the actors implicated in the 2008 financial crash (Magnetar)
                                                                          - it's run by a finance guy, not a tech person
                                                                          - yet it's in the position of someone who takes out a new credit card to pay the interest on the previous credit card

                                                                          Yeah. Looks like crypto, and crypto's Ponzi scheme way of thinking, has slimed its way into the "real" economy after all.

                                                                          Oh and welcome back, global financial crash. We missed you. And eyyy, how you doing Enron long time no see:

                                                                          CoreWeave isn’t alone in its complex finances. Meta took on debt, using a SPV, for its own data centers. Unlike CoreWeave’s SPVs, the Meta SPV stays off its balance sheet. Elon Musk’s xAI is reportedly pursuing its own SPV deal.
                                                                          "Complex finances" are what companies engage in when there isn't any there there (SPVs were Enron's "financial innovation" too).

                                                                          Peter Thiel pulling his investments out of NVIDIA makes far more sense after reading this. Looks wobbly.

                                                                          It is perhaps time to discuss the enormous stock sales from CoreWeave’s management team. Before the company even went public, its founders sold almost half a billion dollars in shares. Then, insiders sold over $1 billion more immediately after the IPO lockup ended.
                                                                          ...
                                                                          “It’s noteworthy that people who have a good view on that business are cashing out,” says Leevi Saari, a fellow at the AI Now Institute.
                                                                          and of course
                                                                          It makes a certain kind of cynical sense to view CoreWeave itself as, effectively, a special purpose vehicle for Nvidia.