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"SpaceX AI is doing something that Anthropic and Open AI both didn't and couldn't do... what is xAI doing? xAI is building data centers, right now on Earth, that are larger, more productive, and they're built faster and at lower cost than any other data centers in the world......

58,309 views โ€ข 1 month ago โ€ขvia X (Twitter)

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David Friedberg: Michael Burryโ€™s Datacenter Math is Wrong โ€œI actually think Michael Burberry's got this wrong.โ€ โ€œWhat Michael Burry is saying is that all of these hyperscalers have extended their depreciation schedule or the useful life of their data centers by roughly 2x, which cuts the operating costs in half when they report it in earnings. And so it's making their earnings inflate.โ€ โ€œSo he's claiming they're cooking the books. Google first made this change in Q1 of 2021, where they said the servers are now going from 3 to 4 years. Separately in 2021, Google took networking equipment from 3 to 5 years. And then in 2023, they took it from 5 to 6 years.โ€ โ€œAnd so this is a result of this effort where they went in and did an analysis. So what happened?โ€ โ€œWhat happened in the data centers is that the data centers transitioned from being primarily data storage and data transfer systems, where you would use hard drives and RAM and memory to store data and then transmit it back out, to being data processing centers because of the AI boom.โ€ โ€œSo as AI became more important in the data center, more of the dollars that are going into data centers were allocated towards chips from data storage, which initially was hard drives.โ€ โ€œAnd then suddenly, when you put these processors in to process the data to do AI, the majority of the spend and the majority of the energy is going towards the processors.โ€ โ€œI made some calls and I checked around with some other friends, and everyone says the same thing: that these 7-8 year old TPUs and GPUs that are sitting in the data centers are still being used and they're being used at 100% utilization.โ€ โ€œSo that actually justifies and validates the depreciation schedule being much longer versus shorter.โ€

The All-In Podcast

304,297 views โ€ข 7 months ago