Yes true but this article is one of many and the pressures on China’s approach are legitimately mounting. Fair point though. Stock markets dont mean much in china.
Ironically though I think stock market volatility of Chinese AI stocks shows their stock market is a bit healthier on that portfolio compared to the US which has runaway growth built on massive USD quantitative easing.
This is not true either though. China is rapidly divesting from certain AI portfolios and is not immune to the economics of data centers especially as they are energy vulnerable. You can’t just say something is a public utility (which is good btw) and hand wave away costs or operation.
Im sure you realize Chinese state owned operations have gone bankrupt many times in the past and continue to do so.
The issue is the promised profits (edit or lets say productivity to avoid capitalist terms) simply never materialized and its a heavy burden on an over leveraged nation like china. US can buoy massive losses by pumping USD but that can only last so long too. AI is here to stay but the costs to run it, and the value you get out of it, are deeply imbalanced right now and portfolios are starting to show it. Name a VC who thinks AI is hot, none. Anyone with data centre stocks likely feeling some red lately. Its been estimated AI needs to generate 6 trillion in the next few years to cover data centre losses alone https://futurism.com/future-society/data-centers-trillion-capital-time-bomb-bain meanwhile revenues are trending downward. This is very similar to the Dot Com bubble.
Edit: public utilities still have costs of operation even if not pursuing profit. More expensive operations still drag down an econony which is why if you build a state owned power plant you should aim for efficient ones not inefficient ones. These data centres are exacting mass cost on the chinese economy which is energy insecure. These pressures cant simply be ignored by saying oh its okay its a public utility. If we had infinite energy and resources sure. But no one does.
The idea of AI as a public utility is pretty cool. But I admit you are an early advocate for this and encourage you to keep pushing it. Edit: my take is highlighting how economically unsustainable the models are under hyper surveillance capitalism, which compliments your take i think.
Ah this old song and dance. Meanwhile reports Putin is making demands Poland demilitarize. Russia has zero interest in walking away from war.
I appreciate more posts about African politics here, thanks.