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Posted by smartmic 3 hours ago

Banks are now trying to offload the AI data center debt they just underwrote(startupfortune.com)
199 points | 153 commentspage 2
iovrthoughtthis 3 hours ago|
Who is building the infrastructure to resell the gpus from failed data centers if / when this collapses. It would be a waste for everything to get wasted
glaucon 2 hours ago||
Maybe as ship's ballast.
cosmotic 3 hours ago|||
The GPUs used in data centers cant really be used outside the same context. They cant connect to standard PCs or servers. They are highly specialized. The resale would need to be at the server or rack level for the same use case.
doubled112 2 hours ago|||
Aren't they PCIe like everything else or am I missing something? I know they have some fast interconnects. If not, is an adapter to PCIe possible?

Cooling is usually what kills you with server gear at home. I don't have a cold aisle, or a case that flows that much air. Can I water cool it enough?

No video outputs would probably be my biggest annoyance. It should be fine at headlessly rendering games for streaming though, as well as AI.

If there's a will, there's usually a way.

boredatoms 2 hours ago|||
Lots of the newer stuff is watercooled

Yes they use pcie electrically, but its not the same slot shape and there is usually carrier boards

You wouldn’t repurpose these for home gaming, it would still be for llms

marcyb5st 2 hours ago||
Indeed, also even the air cooled ones are designed for high static pressure fans (ie small fans that spin at really high RPMs). Those fans are really really loud.

You can just mod them to run on consumer fans that are designed to spin much slower but have higher diameter

theideaofcoffee 2 hours ago||||
Yes, they're "just" pcie, though units like H100 and newer (or did it start with pascal? i really don't know) have variants that use a proprietary connector called SXM, but it's always just pcie lanes underneath. In some versions there are interposer and mezzanine boards, but again, pcie with associated bits and bobs like retimers and pcie switches. Not impossible to integrate, just annoying.

So, sort of specialized? but not really.

> If there's a will, there's usually a way.

That's the spirit!

LoganDark 2 hours ago|||
I bet China will find a way. They have stuff like desktop-size motherboards with BGA soldered mobile chips, just cause they can.
happycube 2 hours ago|||
They already have PCI-e SXM risers and external multi-SXM boards for V100's.
hypfer 2 hours ago|||
I mean it's not that hard. It's just hard if your frame of reference is "can I download it within one click on my $6000 Macbook".

This whole subthread is just sad. "Oh no, it's not the same form factor. It is useless".

Where's the "Hacker" in "Hacker News" there.

It's a shame that we need to defer to "China" as a shorthand for "actual engineers" just because our own engineers lack imagination and drive that would validate being given that title in the first place.

LoganDark 2 hours ago||
> It's a shame that we need to defer to "China" as a shorthand for "actual engineers" just because our own engineers lack imagination and drive that would validate being given that title in the first place.

There are a lot of reasons other than skill why China is the way it is. Culture and locality are big ones. I don't know a whole lot but I disagree that any "actual engineer" could easily come up with a sustainable business for this stuff in the US -- for example, harvesting and processing used parts for their components is a hugely laborious process, and China has a huge culture of recycling and reworking that simply does not exist in the US (and would largely be socially unacceptable to introduce!). Take for example the pre-modded 4090s, or the BGA desktop motherboards I mentioned, or any number of other products that are based not merely on sheer engineering. It's not exactly engineering on its own that causes these things to happen, but more the fact that nearly anybody can just throw together an operation like that and have tons of workers available to make it sustainable.

hypfer 1 hour ago||
I do believe that your assessment that it will come from China is right. Though, at least the "coming up with the idea" is something that could be done in the West I would argue. We too could read datasheets and probe stuff. We just chose not to.

Please don't misunderstand me as attacking you. I was attacking that other guy further up the thread with the empty GitHub account and the equally empty ambitions, trying to drag all of us crabs back into this bucket we find ourselves in.

LoganDark 1 hour ago||
> I do believe that your assessment that it will come from China is right. Though, at least the "coming up with the idea" is something that could be done in the West I would argue. We too could read datasheets and probe stuff. We just chose not to.

Oh, plenty of people do not choose not to -- there are tons of blog posts and YouTube videos out there of people doing stuff exactly like this! It's just the making it sustainable part that's very difficult outside of somewhere like China, because -- unless you have special VC privilege -- you can't really offer reasonable prices to the masses, which makes your purchase volume go down, which further drives up your prices even more, until it converges on some insane number.

ReptileMan 13 minutes ago||||
I don't mind running private deepseek instances on server rack that I have bought for cents on the dollar.
charcircuit 1 hour ago||||
Why not use them to host AI models? There is a ton of demand for AI that shadows consumer Pc usage. There is a compute shortage right now for AI.
richwater 2 hours ago|||
There have been some examples of folks ripping off the SMX interface and rewiring the card for PCI-E but I'm not sure how efficient that would really be or what kind of market there could be
boredatoms 2 hours ago||
Here is an example of an SXM2 adapter board to use a regular pcie slot

https://ebay.io/m/imDgiL

theideaofcoffee 2 hours ago||
I volunteer as tribute!

I'd much rather be in the recovery/asset remarketing market rather than the primary/reseller one when this thing pops, for sure.

TZubiri 46 minutes ago||
Y/N

Is this our chance to 'get rich' by buying a negative valued asset? Like that time barrels were trading at 0$ or negatives?

cmiles8 2 hours ago||
Same thing they did with bad mortgages just before the 2008 crash.
kilohotel 2 hours ago||
"bank does what banks normally do" is not news
dofm 2 hours ago||
JOHN TULD: And Mr. Sullivan that challenge is?

PETER SULLIVAN: We have to hold these assets on our books longer than we might ideally like to.

JOHN TULD: Yes.

theideaofcoffee 2 hours ago|
JOHN: So. Now that we know the music has stopped. What do we do about it?

JARED: Sell it all. Today.

JOHN: Is that even possible, Sam?

SAM: Yes. But at what cost?

treebeard901 1 hour ago||
If the next token prediction machine doesnt live up to the hype, this is going to be one massive bubble.
robots0only 1 hour ago|
The next token prediction machine is writing 90%+ code at multi-trillion $$$ companies, its already solved millennial problems -- but yes its definitely not living up to hype.
TZubiri 40 minutes ago||
But it's creating new problems, and when the damage those new problems outweighs the value created, then that's when the bubble starts (or started) to form and we live in a delusion until the damage massively outweigh the benefits, is when the bubble popping starts being considered, and then when there's irreversible damage is when the bubble popping is marked for formal revision and then when ...
ls612 2 hours ago||
This is completely normal. Banks underwrite large loans and then package a bunch of them in different ways to sell to different investors.
ButlerianJihad 1 hour ago||
Sorry if this appears obtuse, but what exactly is an “AI Data Center”?

Is it a data center with nothing but GPUs, that does nothing but inference all day and all night?

Is it a data center custom-built for only AI companies to use?

Do these “AI Data Centers” have data storage? VPS? …

Or, as I suspect, is “AI Data Center” simply a fake media buzzword that really means “Normal Data Centers” but with political baggage and stigma built-in.

chasd00 26 minutes ago||
> Or, as I suspect, is “AI Data Center” simply a fake media buzzword that really means “Normal Data Centers” but with political baggage and stigma built-in.

No you're absolutely right. The only difference that I can tell is power requirements are legitimately higher because GPUs consume more electricity. More cooling is also needed because there's more heat generated. Aside from those two things, it's a plain old datacenter that companies have been building at break neck speeds since like 1996. Now that I think about it, how come there's no panic about additional Internet backbone capacity needed to support these "AI datacenters"?

rhdunn 1 hour ago||
It's a data centre being build specifically to run LLMs (and possibly other ML models). As such, it will be focused on NVIDIA servers with large numbers of inter-connected GPUs (so they can run the 2T-4T parameter models from OpenAI, Anthropic, etc.) [1].

It's a different build-out to a data centre that can host video/YouTube content (fast CPU, no GPU, large number/size of hard drives), or that can run web servers (fast CPUs, low to average hard drive capacity).

[1] https://www.nvidia.com/en-gb/data-center/

blurbleblurble 3 hours ago||
They should offload the overprovisioned, hyper concentrated GPUs back to the people
bunderbunder 2 hours ago|
Why? It's hard to see what they're good for outside of AI data center workloads. Your average member of the general public arguably doesn't have much use for a "graphics processing unit" that isn't actually capable of processing graphics
Toynbeeidea 2 hours ago|||
I run free local models on my A4500. I wouldn't mind a little upgrade... if I could afford it.
blurbleblurble 2 hours ago|||
You sound exactly like the people who didn't understand personal computers because mainframes existed.
bunderbunder 2 hours ago|||
I don't see how. I'm not saying that consumer-grade hardware isn't useful because enterprise-grade hardware exists. I'm saying that enterprise-grade hardware isn't particularly practical for most consumers. Personal computers were many things, but what they generally weren't was people installing IBM S/390s in their living rooms. Because some of the same design features that make them great for centralized, high volume business workloads also makes them kind of a PITA if that isn't what you need.

For my part, I do work on machine learning projects at home. But I'm nowhere near operating at a scale where datacenter GPU features like being optimized for 4- and 8-bit calculations would be a net benefit. Nor do I have any particular desire to have one of those things making my home office sound like I live next to a steel mill.

It's not too far off from why I don't have a box truck parked in my garage even though it's technically more capable than my Kia. And on the occasions when that is what I need, the local hardware store will gladly rent one to me for $20 per day.

blurbleblurble 2 hours ago||
They're buying out RAM and consumer GPUs too.
Ekaros 1 hour ago||||
Mainframes did not make and still don't make very good personal computers. Same goes for these "gpus". They are the modern day mainframes. (I know we still have mainframes, but that is besides analog)
fasterik 2 hours ago|||
What exactly is the average consumer supposed to do with an NVIDIA H100 or GB200?
PowerElectronix 2 hours ago||
They can have a pretty good LLM running in there, or cad design. For the average joe, having the free tier of AI without the breach of privacy is pretty good already.
fasterik 2 hours ago||
For the average joe, spending $10k on the server-grade hardware needed to run the GPU, plus $100-$200 per month for power is not a great investment.
iamnothere 25 minutes ago||
The hope is that a crash would lead to fire sale prices, and as for power, you may not need to run your system 24x7 depending on your use case.
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