David Sacks Says the Biggest Risk to the AI Buildout Isn’t Demand, ‘If You Had Dark GPUs, That’d Be a Disaster for Everyone’
David Sacks, co-founder of Craft Ventures and AI advisor to the President's Council of Advisors on Science and Technology, warned on the All-In podcast that the biggest risk to the AI buildout isn't demand but a glut of compute. He cited the dotcom crash and the resulting dark fiber as an example of an overbuilt infrastructure that led to disaster for everyone.
Nvidia has signed memorandums of understanding with several major financial institutions to mobilize $500 billion of capital for AI infrastructure development, but Sacks emphasized that this figure is an aspiration, not yet committed or raised money, and not revenue for Nvidia. He argued that political headwinds and the difficulty of building data centers will almost guarantee there won't be an oversupply relative to growing demand.
The bear case on AI infrastructure usually stems from disappointing demand, but Sacks sees that as the less likely scenario.
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