this post was submitted on 25 Jul 2026
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Datacenter economies of scale do not seem to be panning out, 'cause they're buying into a RAM cartel who knows they're desperate.
Coreweave's reports say that the GPUs are 85% of the cost of a data center, and that they'll last 6 usable years. This isn't like building a facility like TSMC, datacenters feel more like COGS than capital to me, and those aren't businesses I would want anything to do with even if I didn't think they were all run by conmen who are rapists or racists or both.