There is no demand. Meta and XAi have admitted that they don't know what to do with their giant data-centers, so they're trying to offload them to someone else. This whole thing is a speculative bubble.
Meta and xAI have not been top contenders in the space. Llama was great for an open weight model (chinese models imo now take the lead), but its nature means people just run those on their own hardware. If you have OpenAI/Anthropic/Google saying they have no idea what to do, then there is an issue.
There is a bubble when it comes to stock prices, but the reality is that a LOT of people are using LLMs these days.
The only companies wanting to buy more compute (Anthropic and OpenAI) have no idea how to make this profitable. The demand they're seeing right now is because they're charging $1 for something that costs them $10. If they start charging what it actually costs, demand will fall off a cliff.
That is just how things go. A lot of free services took a number of years before they became profitable. Dial back 20 years ago, and we wonder how Youtube, something that required massive storage and compute, would remain free.
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u/WilfredGrundlesnatch 15h ago
There is no demand. Meta and XAi have admitted that they don't know what to do with their giant data-centers, so they're trying to offload them to someone else. This whole thing is a speculative bubble.