Oh yeah, this is gonna end well.
It just means demand is consolidating to winners. There's no denying openai and anthropic and maybe Google have a ton of demand. The fact that xai and meta do not does not mean no demand exists.
And the point is not that “no” demand exists but the likes of AWS are building to the moon citing massive future need but that simply doesn’t jive with all this unused capacity from others coming to the market.
And building out massive capacity to sell a product that’s likely to trend to a low margin market commodity isn’t a great business.
Firms are currently experimenting and figuring out the correct way to use these tools in the production function.
Facebook and Twitter are both now signaling that the resources they funded with vast amounts of capital would be worth more to shareholders if they were leased to the highest bidder.
This is either a realization that their internally developed product/service roadmap is not panning out, or that the lease demand is so high that they’d be fools not to take advantage.
Hope so. It also would put hardware prices down.