DCYC CTO

Here is why Hyperscalers are deliberately overbuilding Compute and Datacenters. They are thinking beyond quarters, years, or even multi-year cycles. Beyond immediate ROI. The smartest people at the Hyperscalers believe that executing the RSI -> AGI -> ASI loop will be about Compute, not Data, and thus the value and importance of Compute (and Power) will skyrocket from here. They are anticipating inevitable post-LLM architectures that will scale purely with Compute and see LLMs as NOT being optimally "Bitter-Lesson-Pilled". When the right data-efficient and compute-maxxing algorithms and architectures arrive, they will AlphaZero and Self-Play their way towards ASI and ultimately towards solving every problem in the World. They will need all that Compute (and more) to perform guided Neural Architecture Search and/or Evolutionary-Search over incredibly vast search spaces. When such architectures inevitably arrive, raw demand for compute will 100x overnight. It's not about "Consumer AI Apps". Those don't matter since a civilizational race is at play here. If this vision is correct, Overbuilding is hyper-Rational since the upside of capturing even a tiny slice of the Lightcone (ASI-related superprofits) will be measured in the Septillions. This massive Compute advantage will also help them gobble up and acquire the most promising of "next-Anthropic" AI Neolabs that are rapidly popping up now. The latter will have no choice but to merge/partner up with one of the top 5 hyperscalers. 65 year old boomer Asset Managers on Wall Street and CNBC pundits who studied History at Villanova are not sufficiently AGI-pilled. Hyperscalers are not thinking on short-termist Wall Street timescales, which is a good thing for the World. Obsessing over “Quarter-to-Quarter metrics” and “Corporate Adoption” is toxic. Advanced Alien Civilizations would undoubtedly optimize for timescales longer than 90 days. Ironically, even early, partial AGI will cause wall street to rapidly shrink as an industry, as every human will have a 300 IQ Eugene Fama on their smartphone, with any of their remaining margins absorbed by Tech companies and/or owners of Compute. This is why Private Equity is so desperate to get into the Data Center game. spx6900 will flip the stock market.