In Reply to: Is AI cyber BS? posted by SagoBob on August 23, 2026 at 09:09:40
Massive over-capacity equaling massive over-estimate of future revenue.
I searched for an article on the fiber optic cable bust, just to refresh my memory, and came across this article. It's pretty interesting regarding how all that capacity was used.
Regarding the data centers, my sense is that all this investment is government driven, with government assurances that the capacity will be used. All this "we gotta keep up with China" rhetoric just smell like bull diarrhea. China isn't even #2 in data center capacity. They're 4th.
I'm kind of petrified regarding our lack of ability to control AI. But, my state of nature is "petrified about something."
From the article:
"The silicon economy obeys the law that supply creates demand. Too bad it’s not true for fiber. It’s hard to remember, as the tech world drowns in a sea of glass—the megamiles of excess fiber-optic cable dragging down the telecom sector—that glut was supposed to be a good thing. ‘Supply creates demand’ was the rallying cry of the semiconductor economy: Carpet the world with cheap technology, and clever hands will put it to work in a thousand ways never before imagined, giving rise to new markets and new demand. Want to carry your entire music collection in your pocket? Sure! Now how about all the music ever recorded? You bet. Moore’s law boiled down to one word: more. The more you have, the more you use. While traditional economics are driven by scarcity, the world created by the microchip is one of abundance."