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Exploring Technology Shortcomings, Data Center Investments, and Repurposing of Equipment
The current technology has shortcomings related to hallucinations and high training costs for AI models deployment. There is a multi-billion dollar investment in data centers globally to support the demand for AI warehouses and Nvidia chips for model training. However, the risk lies in potential overinvestment if future demand for these technologies does not materialize. Companies like CoreWeave have adapted by repurposing their GPU mining rigs from crypto mining to AI compute as the value of Ethereum mining decreased, highlighting the need for adaptability in technology investments.