Big Tech cannot cut AI CapEx due to catastrophic FOMO risk
M.G. Siegler · How DeepSeek Changes AI Research & Silicon Valley w/ M.G. Siegler · Jan 27, 2025 · at 43:16
Investor M.G. Siegler discusses whether breakthroughs like DeepSeek R1 will cause major tech companies to reduce their massive AI infrastructure investments.
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“I think that it won't be so easy also for, as I noted, for all these companies to pull back spend because they've already committed to buying X number of H. 200 chips, and then soon enough, we'll get the next iteration, you know, announced down the road, and so all these supercomputer mega clusters of data centers that are being built right now, they're just not gonna, you know, put the brakes on all of that, because there's a risk they're all playing in the same game, right, and if one of them pauses, maybe they get a short-term Wall Street, you know pat on the back, but if they're wrong, that's like, Catastrophic.”
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