Invisible datacentres and capricious chips: is UK’s AI bubble about to burst?
AI Summary
Recent setbacks in major AI infrastructure deals, including OpenAI's potential withdrawal from a Texas datacentre expansion with Oracle, are raising concerns about the sustainability of the AI investment boom. Negotiations reportedly broke down over financing and timelines. This follows the collapse of a $100 billion deal between OpenAI and Nvidia. Future datacentre leases by major cloud companies have increased dramatically, reaching over $700 billion, placing pressure on the technology to deliver promised economic productivity. A Guardian investigation revealed that several UK AI deals announced with much fanfare are delayed or based on vague agreements, casting doubt on their potential to drive economic growth. These developments suggest potential instability in the AI economy, with investors becoming increasingly nervous about the sector's long-term viability.
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