this post was submitted on 19 Nov 2025
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if tsmc only makes datacenter chips from now on, then "we" are shut out from the huge privacy (and fine tuning specialization) gains given by small efficient cheap to run models (or play games on new hardware). US datacenters will serve US empire/political establishment both with government as main LLM customer, but also for data collection/palantir ontology/social credit scores on every American.
I suspect that better datacenter chips won't actually reduce their cost due to supply limitations, but even for small efficient models, personal hardware has a long payback period compared to a per token "rental" cloud charge. It is unlikely that all of the datacenter chip buyers will have non-government customers to use them all, and so either bailout or bankruptcy followed by megatech buying the datacenters for cheap followed by a bailout in government revenue for big tech global/citizen control applications.
Eventually, even the government has too much AI resources, at planned expansion pace, and then consumer/business computing/gpu market comes back. Could be as soon as 2026 that a collective understanding of absurdity occurs.