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Is this money laundering somehow?

Do you know if this includes Azure capacity for customer AI workloads? My assumption is yes just because Azure capacity in general seems to be an afterthought for them now

Does "custom silicon" = Majorana? Have they deployed those internally yet? How power efficient are they?

I always thought that the energy numbers of 10gw or so being stated for these data centres were way too large for them to be economically feasible. The energy has to come from somewhere, it can't be all built anytime soon and is just more costs that has to be repaid somehow.

I assume they're buying GPUs and storing them in warehouses because there isn't enough energy to power them.

It's going into the obsidian Fallout game

Nuclear weapons probably

Their own perv glasses, just a guess

I vaguely remember a story last year about Microsoft having a warehouse of AI chips that they were buying in advance but I can't remember where it was published.

does the $535bn include orders yet to be manufactured? or are they literally sitting in a warehouse silently manipulating prices?

i wanna know what happens when a gang robs the warehouse. is it cheaper to just take the hit and not report the theft to not disrupt share price or what?

To me this sounds like the strategy in Monopoly where you buy up all the houses in the box so the other players can’t get them in order to build Hotels. All these firms are trying to win and if NVIDIA is the only GPU in town then buying them to keep them just for you makes some weird sense

From what I understand, most of those GPU purchases are for data centers that haven't been built yet. Like, they're buying up as many as they can now so if there is a shortage, it hits us, not them. I may be way off on the business side.

They suck at it. I'd tell you how bad, but I'm still under NDA. And I'm pretty sure most of the GPU's are sitting in Taiwanese warehouses becoming obsolete before ever being racked and stacked. The whole thing is a scam.

Jensen Huang gonna Jensen Huang I guess

We can calculate this, right? Every GPU uses what, 300W? With attendant hardware 500W? Just spitballing based on Newegg.

Do we actually know that the GPUs have been even produced? Or do they just exist on paper?

It means there’s potentially over a hundred billion dollars’ worth of GPUs in warehouses bsky.app/profile/drin...

So these companies are just buying up rapidly-depreciating tech and warehousing it?

Is it possible that they're burning up GPUs constantly and just need replacement chips at that scale?

SpaceX is buying them for its orbital data centers!

So all they've done is de facto colluded to drive up hardware prices?

🎯

Dumb question—how much of that is existing physical hardware vs. commitments to fulfill?

A high end GPU will pull 1000-1400 watts. Add another 20-30% for other stuff in the system.

If it's any help, I used to work for a company that made cooling units for data centers. The units they built sat in warehouses for months and months because they couldn't be installed. Maybe that's part of it for GPUs as well? (Along with what Chad Loder was saying in their thread responding to u)

Is it literally just GPUs collecting dust because there's no datacenters or electricity for them?

Even Google?

i did see some chill instagram reels from like, cyberdeck meshnet type people who are like "oh dude these old crypto boards are all over the place for next to free now just learn how to chop them up and its like a ps5" so its out there but the skill and knowhow isnt, necessarily

how much has microsoft actually purchased and had delivered?

Have they even been built? This can't have been purely paperwork sales, can it?

rebooting the Banjo Kazooie franchise

To a guy in construction called Devin Null.

What would it mean in terms of, say, accounting fraud if they have been counting the running costs of model training as capex, because obviously that's the same as physically building a physical data centre if you (deep bong rip) really think about the nature of an asset, man?

Interesting - is it that getting an insurance policy for your not-a-thing makes it more plausible to the bank?

*rubs my suspiciously capex-shaped tummy* just no way to know, really

This is one of the more bizarre things you’ve uncovered. I am baffled

Hookers and blow?

Not to their gaming division.

I guess it's gonna take a lot of money to make Windows 12 an always online SaaS model OS?

For real cloud usage? In my mind this is actually good news in terms of Microsoft stock.

Is that good

LLMs are about as energy inefficient as it's possible to conceive. However the amount of energy they currently need could fall off a cliff on the back of algorithmic innovation. Good old 'software upgarades'. If that happens, as seems inevitable to me, most data centres will become worthless.

Fascinating that the reporter framed the “scoop” as the planned growth over 5 years, and just casually glided past the 2GW thing like it’s whatever.

It was reported back in 2024 that Microsoft was planning on stockpiling 1.8 million GPUs so that they would be able to roll out new services easily. Assuming other companies are doing that too, it wouldn't be too hard to get to the vicinity of a half trillion $.

It will be interesting to see how many levels of fucked up this bubble actually is.

3/3 When the next CEO vows an AI utopia, ask: Where’s the juice coming from, and who pays for the transformers? Because no model runs on air, and a republic that auctions its infrastructure without debate is already living in the illusion—and the bill is coming due.

I sometimes wonder, do the chips even exist? There is a limit on how many chips the existing fabs can produce and building new ones takes years

You don’t have to grow the tulips to profit off of speculation in the bulb frenzy.

I know exactly what you mean. I've been trying to figure out if/how these things can move into general cloud server stuff, but that's fairly built out, so there's demand, but not a vertical line of demand.

(An old joke in Dallas is that you know a bubble is bursting when the greedheads in Highland Park buy in, and Harlan Crow himself is allegedly converting Dallas Market Hall into a data center rather than have to pay for renovations and repairs that needed to be done 30 years ago.)

I guess large parts of those gigantic sums are just going around in circles

Just came here to do this, so thank you

yet for me personally, that puts 2 GW into a more useful perspective. it's enough for 20 such facilities, providing more than a thousand jobs at start and scalable to 2.5k with night shifts yet, a small DC gives only 5-10 job positions *at best,* and *only* for qualified server admins

So they can nearly time travel?