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Hello and welcome to Better Offline.

I'm your host, Ed Zittron.

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Subscribe to the newsletter, buy the merchandise, it's all in the notes, and we're on the second

installment of our three-part haters' guide to the AI bubble and the cracks within the

generative AI industry.

And how they're becoming bigger and scarier in the potential economic meltdown caused

by a collapse in generative AI spending, well, it's not really a generative AI spending,

it's literally just fucking GPUs. And I think it might be sooner and likelyer than many think.

Toward the end of the last episode, we talked about one of the inane comparisons we hear

between today's nation's state-sized spending on JNAI capital expenditures,

and the investments that Amazon made when scaling Amazon Web Services, which was literally

the foundation of cloud computing at scale, I would say. Someone's going to email and say I'm

wrong, not going to read it. And I had to cut things short because we ran out of time,

but I want to continue the conversation because I think it's important to examine this comparison thoroughly, if not just to explain why it doesn't work.

It's also I want to stop hearing it. I want when people say it to me, I just want to send

him this fucking episode and say, leave me alone, buddy boy. But, but, but, but, but, the first point

I want to make in this episode is that Generative AI and large language models do not resemble Amazon Web Services or the greater cloud compute boom, and Generative AI is not infrastructure.

Now, some people compare LLMs and their associated services to Amazon Web Services or services, or services like Microsoft Azure or Google Cloud, the giant multi-billion dollar operations that

...