Is (Chinese) Software Suddenly Eating The World?
This is the real deal. Deep Seek, as I suggested when I posted about it last Friday, may have had H100’s that they weren’t suppose to, and they may have spent more than the 56+ million they said, but the issue remains the same. Nvida will no longer be selling as many chips, at the prices all the WS analysts modelled into their estimates.
The AI bubble has popped as some of us suggested was inevitable. This article raises some great points and let me point out a specific confirmation. On a day where the DJ Industrials & DJ Transports both actually rallied, the DJ Utilities dropped over 2%, while interest rates fell meaningfully! It means that the huge increase in the need for excessive amounts of electricity for all those additional data centers with all the millions of energy sucking microprocessors is not going to be as great as everyone has been projecting.
Yes, data centers will be built and chips and electricity needs will increase, but nowhere near the unsustainable levels that everyone has been projecting recently. https://www.zerohedge.com/technology/chinese-software-suddenly-eating-world