The costs of capex go way up. It costs a lot more to build datacenters. It will cost a lot more to buy GPUs. It might cost less to buy energy? Lenders will be in poorer shape. AI companies will lose funding. I think it’s already quite tenuous, given how little moat AI companies have. Costs are exploding and pretraining scaling seems too diminishing to be worth it. It’s also not clear how AI labs will solve the reliability issue (at least to investors).
I also expect Taiwan to start ignoring export controls if our obscenely high tariffs on them remain.
The costs of capex go way up. It costs a lot more to build datacenters. It will cost a lot more to buy GPUs. It might cost less to buy energy? Lenders will be in poorer shape. AI companies will lose funding. I think it’s already quite tenuous, given how little moat AI companies have. Costs are exploding and pretraining scaling seems too diminishing to be worth it. It’s also not clear how AI labs will solve the reliability issue (at least to investors).
I also expect Taiwan to start ignoring export controls if our obscenely high tariffs on them remain.