As much as it'd thrill me in one of the worst Pyrrhic victories to see the AI bubble burst, I think it is way too early to claim that a single bad day or a single bad week means it's collapsing.
The compute they sold is based on the idea that the amount of money people spend on inference will continue to go up dramatically.
If we’re in a gas shortage, all that matters is who has the gas, true. But the issue is that we’re burning 50% of the gas that’s made every day, mean while the other 50% is being stockpiled based on the idea that everyone is going to drive 10x farther next year.
It’s “How much longer will the bond market sustain the nonstop spending spree?”
As much as it'd thrill me in one of the worst Pyrrhic victories to see the AI bubble burst, I think it is way too early to claim that a single bad day or a single bad week means it's collapsing.
The only thing that matters is who has the Compute.
I bought a gaming GPU six months ago for running local LLMs, at outrageous price (2x MSRP), and in 6 months it's price doubled again.
AWS already sold all the compute it has planned for 2026, 2027 and 2028.
The compute they sold is based on the idea that the amount of money people spend on inference will continue to go up dramatically.
If we’re in a gas shortage, all that matters is who has the gas, true. But the issue is that we’re burning 50% of the gas that’s made every day, mean while the other 50% is being stockpiled based on the idea that everyone is going to drive 10x farther next year.