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bicboss.bsky.social
bicboss
@bicboss.bsky.social
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Reposted by bicboss
edzitron.com
Every single AI data center is a toxic investment, with most of its value tied up in GPUs that will be multiple generations behind by the time these things turn on - and then die in 3-5 years.

All to build for AI demand that doesn't exist.
edzitronswheresyouredatghostio.outpost.pub/public/promo...
Actually, wait - how long do GPUs last, exactly? Four years for training? Three years? The A100 GPU started shipping in May 2020, and the H100 (and the Hopper GPU generation) entered full production in September 2022, meaning that we’re hurtling at speed toward the time in which we’re going to start seeing a remarkable amount of chips start wearing down, which should be a concern for companies like Microsoft, who bought 150,000 Hopper GPUs in 2023 and 485,000 of them in 2024. Alright, let me just be blunt: the entire economy of debt around GPUs is insane. Assuming these things don’t die within five years (their warranties generally end in three), their value absolutely will, as NVIDIA has committed to releasing a new AI chip every single year, likely with significant increases to power and power efficiency. At the end of the five year period, the Special Purpose Vehicle will be the proud owner of five-year-old chips that nobody is going to want to rent at the price that Elon Musk has been paying for the last five years. Don’t believe me? Take a look at the rental prices for H100 GPUs that went from $8-an-hour in 2023 to $2-an-hour in 2024, or the Silicon Data Indexes (aggregated realtime indexes of hourly prices) that show H100 rentals at around $2.14-an-hour and A100 rentals at a dollar-an-hour, with Vast.AI offering them at as little as $0.67 an hour. This is, by the way, a problem that faces literally every data center being built in the world, and I feel insane talking about it. It feels like nobody is talking about how impossible and ridiculous all of this is - it’s one thing that OpenAI has promised one trillion dollars to people - it’s another that large swaths of that will be spent on hardware that will, by the end of these agreements, be half-obsolete and generating less revenue than ever. Think about it - let’s assume we live in a fantasy land where OpenAI is somehow able to pay Oracle $300 billion over 5 years. Said money is paying for access to Blackwell…
October 9, 2025 at 11:28 PM
Reposted by bicboss
bicboss.bsky.social
lmao apparently sore 2 already got the enshittification treatment, that was fast
October 6, 2025 at 10:40 AM
bicboss.bsky.social
lmao apparently sore 2 already got the enshittification treatment, that was fast
October 6, 2025 at 10:40 AM
Reposted by bicboss
edzitron.com
They frame themselves as victims as they draw you into the equivalent of a 4am debate with a stoned teenager saying “but, like, what IS a mind?” And frame fair-minded skepticism as somehow restrictive because you can’t debate their endless, banal and directionless counterpoints. Walk away!
October 5, 2025 at 11:50 AM
Reposted by bicboss
edzitron.com
Honestly this is so cool. Finally the sheen is coming off this damn company. A great week for OpenAI - releasing the most expensive model of all time that also commits copyright violations as a service, you spent $9.2bn on compute in six months, and you can’t make a product better than the rabbit r1
October 5, 2025 at 4:55 AM
bicboss.bsky.social
is sora that bad ? my entire social media feed is now people glazing it and saying "it will replace all animators and creatives"
I cant wait for the bubble to pop
October 3, 2025 at 10:00 PM
bicboss.bsky.social
as an animator myself, i fucking hope sore crash and burn
October 3, 2025 at 8:49 AM
bicboss.bsky.social
cool T-shirt
October 2, 2025 at 9:42 PM
bicboss.bsky.social
also fuck them for using kojima's masterpiece in their slop platform
October 2, 2025 at 11:38 AM
bicboss.bsky.social
and there are still people that claim that ai does not steal
October 2, 2025 at 11:37 AM
bicboss.bsky.social
its prob going to be way cheaper in general to just have humans make videos, it worked perfectly fine for the last 100 years
October 1, 2025 at 2:33 PM
bicboss.bsky.social
I have been thinking about it alot actually, in terms of energy its alot more efficient to just have humans make videos instead of ai that burns a disgusting amount of energy,
October 1, 2025 at 2:33 PM
bicboss.bsky.social
whats with sam altman and his weird obsession over scarlett johansson, its really creepy ngl and thats the guy who fucking run chatgpt
October 1, 2025 at 2:31 PM
Reposted by bicboss
edzitron.com
Here's me two months ago estimating - based on their revenue leaks - that OpenAI was at $5.26bn or so by end of July. I can't believe A) how close I was and B) how I was *too generous*. There were some who said I was being too harsh!
bsky.app/profile/edzi...
edzitron.com Ed Zitron @edzitron.com · Aug 1
OpenAI needs to make $12.7 billion by the end of the year, yet only has made around $5.26bn. To do this, they will have to make over $7 billion in four months, which will massively and aggressively increase costs.
www.wheresyoured.at/howmuchmoney/
Even If OpenAI Pulls It Off, Costs Are Astronomical (And Likely Higher Than Reported) Genuinely, OpenAI would have done something truly remarkable. It will have become one of the highest revenue-generating software companies in history, and have done so in record time. It will be genuinely impressive, though not super impressive, because it’s going to lose tens of billions of dollars doing so. The Information reports that OpenAI has "increased its cash burn to roughly $8 billion in 2025," but I see major inconsistencies in this number based on its own reporting. Last year OpenAI burned $5 billion on $3.6 billion or so of revenue. Compute costs are expected to be around $13 billion for Azure alone — nearly triple the $6 billion of last year, and that's before you consider CoreWeave and Google. OpenAI has more staff, needs more data, their hosting costs and administrative costs and research and development and every other god damn cost will likely be higher. Staffing, especially, is going to be a huge driver of its cash burn, and I’m not simply referring to its increased headcount. As mentioned earlier, in October of 2024, OpenAI had around 3,726 employees, who collectively received $1.5bn in stock-based compensation in the first half of that year (this figure does not include salaries). LeadIQ suggests its headcount is over 6000 today. We’re also in the midst of an AI hiring war, with researchers negotiating packages worth as much as $250m, according to the New York Times. The pressure to meet these demands will only increase the strain on OpenAI’s cash burn. How does that equal "burning $8 billion" exactly? If anything, I expect its burn to be more like $10 billion to $15 billion. Perhaps even more, depending on OpenAI’s hiring, salary, inflation, whether we count stock-based compensation as part of its burn (which, on accounting level, appears on a company’s profit and loss statement, even if it doesn’t involve cash transactions), and what costs the company… its burn (which, on accounting level, appears on a company’s profit and loss statement, even if it doesn’t involve cash transactions), and what costs the company has to pay as part of its Stargate Norway initiatives, as well as its other international expansion plans. That's the thing with OpenAI — even if it was to hit these unbelievable revenue targets again and again, it’s still doing so with a gaping wound in the side of its company, because the underlying economics of generative AI are so deeply unprofitable, with no sign of improving. Nevertheless, if OpenAI does this, it'll be genuinely interesting to see what happens next, because to hit its projected $26 billion in revenue in 2026, they will likely have to make more than Netflix (around $3 billion a month in revenue) by the end of the year.
September 30, 2025 at 6:19 PM
bicboss.bsky.social
Sora hype ? again ? did people forget the first wave of sora hype where everyone said it could make realistic videos and will "make everyone go out of the job" but when it came out it really sucked, im sick of this
October 1, 2025 at 2:29 PM
bicboss.bsky.social
Ed, I love your work, please make it longer
October 1, 2025 at 2:28 PM
Reposted by bicboss
leyawn.bsky.social
meme of a man next to a stack of dominos going from very small to very large text over the largest domino: “openai needs one trillion dollars” text over the smallest domino: “ancient sumerian inventing the concept of money”
September 26, 2025 at 3:16 AM