I feel like the executives are all in this “AI” echo chamber. Like, most people grossly misunderstand what AI is, what it does and what it cannot do, with current tech… And all the execs are sitting around in a circle jerk making up solutions using AI, for which there is no problem to solve.
Don’t get me wrong, some companies are doing cool shit with it. Not necessarily practical shit, but cool nonetheless, other companies just seem to be drinking the AI Kool aid and throwing it at fucking everything for no goddamned reason just to get in on the hype. Investors are close behind, trying to ride the coattails of their “success” to riches, and it’s all just a self-reaffirming system with no basis in reality.
Nvidia is the one profiting here, all this AI smoke and mirrors needs something for it to run on top of, they’re selling the physical tools to make it go. Whether it goes somewhere useful or drives off a goddamned cliff, doesn’t matter to Nvidia in the slightest. They made their money. Get wrecked.
As an armchair economist, lots of things. Loss of money from workers standing around unable to do their jobs because of the technical issues, the cost of doing a restore from backup (technician time, extra help, direct costs of accessing the data), etc. Opportunity costs from having to send business away, or otherwise unreasonably delay taking/delivering orders that have either been given to competitors or cancelled because of the issues.
Even the dang electricity costs of keeping the lights on while waiting for a fix…
Large companies calculate this value as a “burn rate”, which is to say, how much is it directly or indirectly costing to have everyone here, ready to work, and unable to do so because of an issue that affects everyone. Usually measured in dollars per hour. So if their burn rate is 100k/hr, and it takes 10 hours to fix the problem, it’s ~$1M in losses.
They may be able to recoup some of those losses by adding an extra shift or granting overtime to catch up, but for the most part, a large percent of that money is simply gone.