AI's price is collapsing. Meta is selling spare compute, China gave away a frontier model Kimi, and chip stocks fell 18%. Five takeaways for investors.
Good article. My challenge is over 75% of all the compute is driven by arthropic and open AI. Plus you got all the circular deals between them and the hyperscalers and neo clouds . Enterprise barely constitutes 10%. For this to work that has to increase fast and be measurable and compute has to be cheaper and more effective - that is debatable . When capital dries up everything will collapse and will have empty data centers and no need for electricity.
One of the more interesting takes I've seen on the AI boom.
https://groundbreakerre.substack.com/p/the-second-derivative-why-no-one?utm_source=share&utm_medium=android&r=4p3x50
Will have a look!
Good article. My challenge is over 75% of all the compute is driven by arthropic and open AI. Plus you got all the circular deals between them and the hyperscalers and neo clouds . Enterprise barely constitutes 10%. For this to work that has to increase fast and be measurable and compute has to be cheaper and more effective - that is debatable . When capital dries up everything will collapse and will have empty data centers and no need for electricity.
Thanks! And thats some good thoughts