Per Ed Zitron, CoreWeave may be the canary in the ai bubble coal mine.
this post was submitted on 19 Aug 2025
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The amount of malinvestment in AI is so much worse than the Internet bubble. It's basically the only reason the US economy didn't contract hard the last few months. Making data centers for AI has been creating a lot of construction jobs.
It's going to be painful when it pops, and it needs to happen sooner rather than later.
Hopefully a lot of those data centers can be repurposed for cloud data and web hosting.
I only know a little about data center buildouts, but my understanding is that GPUs and web servers aren't built out the same way. That said, I'd expect GPUs just need that much more power, and having more power than you need for a web server is fine.
Indeed. It's masking how bad the US economy actually is. I read recently that about a third of economic activity in the US is currently a few big tech companies pumping each other. Take that away and the underlying picture is ugly.
Thats disgustingly horrifying.