Smash Notes

Back to Is There an A.I. Bubble? A Debate., with Paul Kedrosky & Azeem Azhar.

How Few Jobs Does a Huge Data Center Create?

Azeem Azhar says a huge data center may cost billions of dollars and still employ a handful of people. Two to six people is a normal staff for a multi-billion dollar facility. In the UK, there is an attempt to get people developing data centers to reinvest annuities into the local community.

Azeem Azhar says subsidies for one data center in New Mexico come to four million dollars per job created, leaving aside the cost of the center. Tax abatements and the required improvements to local utilities make the numbers insane, and none of that works long term.

Profits are being made up and down the stack, so there is money in the system and an obvious place for the bill to land. Azeem Azhar says self-regulation does not work. Real rules are needed, whether local, national, or international, about how the systems work and the harms and damages they might cause.

Transcript

Is There an A.I. Bubble? A Debate. ·

The Ezra Klein Show

More from this episode

  1. Is OpenAI and Anthropic's Chip Revenue Share Falling?Ezra Klein asks how AI demand looks once token use is separated from the chips that serve it.
  2. Would an OpenAI Collapse Pop the Economy?Azeem Azhar says Paul Kedrosky talked about frontier models and tokens, while he talked about capital spending and the GPUs, and that the two deserve separate…
  3. What Did Anthropic's Hiring Leak Reveal About Meta?Azeem Azhar says Anthropic accidentally leaked one of its largest customers.
  4. How Did Apple Gain by Skipping Frontier Models?Ezra Klein says Apple decided not to compete in making a frontier model, unlike Alphabet, Google, and Meta. OpenAI and Anthropic are AI companies.
  5. How Is Wall Street Loading Debt Onto Big Tech?Ezra Klein asks whether broader society is protected because Alphabet, Meta, and the other major companies can absorb huge losses on their own balance sheets.
  6. Why Is AI Repricing Cognitive Work?Paul Kedrosky says artificial intelligence is the fastest adopting technology in history, and its fundamental function is to reprice cognitive labor.
  7. How Likely Is a Backlash Against AI?Ezra Klein says discontinuous regulation is quite likely.
  8. Which Books Do Paul Kedrosky and Azeem Azhar Recommend?Ezra Klein asks each guest for three books. Paul Kedrosky recommends Middlemarch, about normal people swept along as a technology revolution takes hold.

People

More answers like this

The other side

More with Ezra Klein

Related episodes

Plays from this note through the rest of the episode.

Weekly highlights

One letter a week.

The notes worth hearing, with the minute they were said.