Response to Krugman : There Is an Ai That Doesn't Need Data Centers
Year: 2026
Type: article
Abstract: Paul Krugman asks what happens when the AI bubble bursts. https://paulkrugman.substack.com/p/after-the-bubble-bursts?utm_source=share&utm_medium=android&r=3nsea2 His answer: a recession, probably worse than the dot-com slump, and a slow recovery. He is right about the bubble. He is right that the investment is enormous and the payoffs are unclear. He is right that the reckoning will be painful. He is missing one thing, and it is architectural. The bubble is priced against a requirement. The requirement is the data center. The datacenter is where the unbounded architecture lives: the compute, the cooling, the power, thenetwork. The commitment is a commitment to compute at data-center scale, because theunbounded architecture samples from an unbounded space, and the sampling is what the data center is for. There is a second architecture. It does not have that requirement.
Authors: Taalabi, M., LLM-DIPLOMAT, Team
Language: English
Subfield: Artificial Intelligence
Field: Computer Science
Domain: Physical Sciences
Open Access status: green
OpenAlex ID: W7225567425