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AI bubble update: 79% of companies say their GPUs sit idle at least half the time, yet most plan new AI platforms
It's so over. They leverage debt to buy these things and NVIDIA is egging them on. The datacenter companies don't have the market and even worse, they can't even install the new hardware that they are buying and GPUs are just sitting idle. They buy this on debt well on advance because every CEO is fearing that they will miss out in the future if they don't buy today. That money needs they need to paid back, but where is the money going to come from if they are not using the product? Next is Nvidia going to come in the next few years with a new product and say that all the continuously depreciating silicon that they have in their datacenters running half capacity and in warehouses sitting idle is now shit and here is the latest model, now pay up piggy. What then?