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this post was submitted on 31 Aug 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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What is the Range Rover in this analogy? A common belief about the 2008 Iceland bubble, which may very well not be true but was widely reported, is that Iceland's credit was used to buy luxuries like high-end imported cars; when the bubble burst, many folks supposedly committed insurance fraud by deliberately destroying their own cars which they could no longer afford to finance. (I might suggest that credit bubbles are fundamentally distinct from investment bubbles.)
By my guess, the servers and datacentres powering the LLMs will end up as the AI bubble's Range Rover equivalent - they're obscenely expensive for AI corps to build and operate, and are practically impossible to finance without VC billions. Once the bubble bursts and the billions stop rolling in, I expect the servers to be sold off for parts and the datacentres to be abandoned.