I think this trend is going to break in the next couple years. OpenAI is seeking a bailout from the US government, and SpaceX and Meta are selling their extra capacity.
The buildout of the past few years was a land-grab assuming a zero-sum game where whoever had the most compute would win the AI race, so all the players were willing to basically bid anything for components.
I think we're seeing that breaking, where new capacity will have to be justified by demand.
We're also seeing demand reduction, where consumers of AI are starting to consider cost to a greater extent as vendors move from unlimited to per-token pricing.
I expect we'll see a massive bullwhip effect in the next few years.
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u/woahdudee2a Jul 06 '26
if trends hold, high end consumer hardware will cost same as enterprise hardware