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this post was submitted on 03 Mar 2025
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TechTakes
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Big brain tech dude got yet another clueless take over at HackerNews etc? Here's the place to vent. Orange site, VC foolishness, all welcome.
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New thread from Ed Zitron, focusing on the general trashfire that is CoreWeave. Jumping straight to the money-shot, he noted how the company is losing money selling shovels in the gold rush:
You want my off-the-cuff prediction, CoreWeave will probably be treated as the Leyman Brothers of the 2020s, an unofficial mascot of everything wrong with Wall Street (if not the world) during the AI bubble.
Nvidia's current downturn is probably moreso due to the disastrous launch of it's 5000 series rather than AI.
If it was AI I'm guessing the drop would be larger.
it's possibly a distinction without a meaningful difference, but I wouldn't say they're selling shovels - this shit is more like renting out shovels. or maybe timeshare?
I'd love to see a postmortem on deals and development... I have some suspicions on how it all got in this mess to start with (largely "if we sink piles of capex now to corner the market on the magical future, we can totes make it through 5y!" type variations), but I want to see if I'm right
see the funny thing is that ms et al are walking back/scaling down their deployment plans, but that's all partial on the whole. microsoft isn't going to completely explode overnight the moment everyone groks llms are trash, even though they're gonna take a hit
the entities like coreweave whose entire existence is predicated on the fairy tale, however...
(I am still worried about the multi-industry downstream impact of when this shit finally pops though, it is going to be nasty)