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Check out Microsofts Lernout & Hauspie investment from 1999
December 9, 2025 at 7:18 PM
Reposted
edzitron.com
"Several developers told me this week GPU shipments are outpacing construction timelines so severely that some firms are storing racks of idle GPUs in warehouses, waiting to be told where to send them."
www.theinformation.com/articles/ai-...
The executives had good reason to be frustrated. We’ve heard cloud providers’ contracts with customers include provisions in which customers can pay less if the provider misses a timeline or if the servers aren’t functioning properly, reducing their uptime. For GPU cloud providers with already thin gross profit margins on renting out servers, these problems can materially alter their financial results. The race to get Nvidia GPU clusters online continues to be a challenge for some firms that promised speedy timelines. And it’s likely that as power becomes harder to secure, which could also cause delays, we might see customers hedging their bets by working with multiple data center providers. Several developers told me this week GPU shipments are outpacing construction timelines so severely that some firms are storing racks of idle GPUs in warehouses, waiting to be told where to send them. Even Meta acknowledged this tension on its earnings call in late October. Chief Financial Officer Susan Li said the company is now “staging data center sites,” or essentially getting them ready with everything but the GPU racks, so Meta can “spring up capacity quickly in future years as we need it.” In other words, even large data center developers like Meta are building buffers to prepare for capacity spikes. One thing is clear: We’re entering an era where the physical limits of labor, equipment, utilities and contractor bandwidth are colliding with customer demand. It’s going to be a bumpy ride.
November 24, 2025 at 6:52 PM