Bitcoin mining's computational power cycle is likened to AI infrastructure demand

Odaily reports that Clem Chambers stated China's LLMs catching up to OpenAI and Anthropic does not signify the end of the AI boom, as LLMs are only one part of the AI industry. He believes that free or open-source models will not diminish AI demand, as enterprises and governments still require higher-level AI capabilities. He draws an analogy between AI infrastructure demand and Bitcoin mining, stating that both revolve around kilowatt computing power and kilowatt-hour costs. Hardware, energy, cooling, and turbines cannot be provided for free, and the related value chain is constrained by resources and upgrade cycles. Chambers points out that AI demand drives continuous iteration of hardware and software, and equipment may face replacement cycles similar to crypto mining. He argues that the cost base of AI comes not only from the models themselves but also from computing power allocation and infrastructure investment. (Forbes)