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2026 Kicks Off With AI News Frenzy Out Of Asia
New year, same theme: It's all about AI.
Asian tech shares were aggressively bid Friday amid a hodg
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No doubt Sam, Elon and Jensen will simply advocate for even larger inefficient models. And more datacenters to accommodate them. The industry here has too much (as in hundreds of billion dollars) riding on that approach to pivot to something more efficient.
For those who are interested in a deep dive into what Manifold-Constrained Hyper-Connection is and how it works, this morning I read an illuminating piece “DeepSeek Used 1967 Math to Fix AI’s Biggest Crisis. Meet mHC” by Rohit Kumar Thakur in the Medium.
I’m going to disagree with you on this, even conceding that you clearly know way more than I on the technical side.
I would argue that the industry would move very quickly to adopt more efficient methods so long as it produces equal-to-better quality results. At the same time, more efficient models wouldn’t stop their voracious cap-ex / data center build-outs. It is in the nature of organic systems to expand until they have absorbed all of the resources in their environment. If you make training runs 100x more efficient, then they will just do training runs 100x more frequently.
While a huge gain in model efficiency might offset some of the urgency around the pace of building new data centers, that was bound to happen regardless just because of the increasing difficulty attendant to constructing each new center. Community push-back, water use, grid constraints, labor availability, hardware availability etc. all stand in the way.
” even conceding that you clearly know way more than I on the technical side.” That’s doubtful!
Just extrapolating from the US industry response to the first DeepSeek breakthroughs. Despite Altman’s Code Red message to his team, not a whole lot has happened. The hope is that some domestic outsiders start to roll out more efficient models … and then get bought out by the big boys. Perhaps Elon’s sale of Grok was a harbinger?
And somebody, somewhere is working on AI-on-a-PC, good enough for 98% of us. The builder of that chip will do well. The rest of the AI hype will burst as the loudest bubble implosion ever.
A similar thing happened a few decades ago. The hype wasn’t nearly as loud, but INTL did OK.