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.