From Newsgroup: soc.culture.bulgaria

HererCOs How the AI Crash Happens

The U.S. is becoming an Nvidia-state.
By Matteo Wong and Charlie Warzel

October 30, 2025

The AI boom is visible from orbit. Satellite photos of New Carlisle,
Indiana, show greenish splotches of farmland transformed into
unmistakable industrial parks in less than a yearrCOs time. There are seven rectangular data centers there, with 23 more on the way.

Inside each of these buildings, endless rows of fridge-size containers of computer chips wheeze and grunt as they perform mathematical operations
at an unfathomable scale. The buildings belong to Amazon and are being
used by Anthropic, a leading AI firm, to train and run its models.
According to one estimate, this data-center campus, far from complete,
already demands more than 500 megawatts of electricity to power these calculationsrCoas much as hundreds of thousands of American homes. When all the data centers in New Carlisle are built, they will demand more power
than two Atlantas.

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Many people believe that growth will only continue. rCLWerCOre gonna need stadiums full of electricians, heavy equipment operators, ironworkers,
HVAC technicians,rCY Dwarkesh Patel and Romeo Dean, AI-industry analysts, wrote recently. Large-scale data-center build-outs may already be
reshaping AmericarCOs energy systems. OpenAI has announced that it intends
to build at least 30 gigawattsrCO worth of data centersrComore power than all of New England requires on even the hottest dayrCoand CEO Sam Altman has
said herCOd eventually like to build a gigawatt of AI infrastructure every week. Other major tech firms have similar ambitions.

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The yawning gap between data-center expenditures and the rest of the
economy has caused whispers of bubble to rise to a chorus. A growing
number of financial and industry analysts have pointed out the enormous divergence between the historic investments in AI and the techrCOs
relatively modest revenues. For instance, according to The Information,
OpenAI likely made $4 billion last year but lost $5 billion (making the
idea of a $1 trillion IPO valuation that much more staggering). From July through September, MicrosoftrCOs investments in OpenAI resulted in losses totaling more than $3 billion. For that same time period, Meta reported rapidly growing costs due to its AI investments, spooking investors and sending its stock down 9 percent.

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The economic nightmare scenario is that the unprecedented spending on AI doesnrCOt yield a profit anytime soon, if ever, and data centers sit at the center of those fears. Such a collapse has come for infrastructure booms
past: Rapid construction of canals, railroads, and the fiber-optic cables
laid during the dot-com bubble all created frenzies of hype, investment,
and financial speculation that crashed markets. Of course, all of these build-outs did transform the world; generative AI, bubble or not, may do
the same.

https://www.theatlantic.com/technology/2025/10/data-centers-ai-crash/684765/

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