This is the first major real sign of the bubble popping. An actual verified report from the Financial Times regarding massive drop in revenue expectations, rather than just people hoping it pops.
It hasn’t been people hoping. There are quite a few analysis papers out there doing the math of the impossibility of achieving profitability of the current US model. Chinese models offering equivalent performance for 10x lower cost, and near frontier level open weight models to run in house for the cost of the hardware, and this hardware being way more modest, makes the bubble pop a certainty. As with data loss, the question is when, not if.
This is the first major real sign of the bubble popping. An actual verified report from the Financial Times regarding massive drop in revenue expectations, rather than just people hoping it pops.
It hasn’t been people hoping. There are quite a few analysis papers out there doing the math of the impossibility of achieving profitability of the current US model. Chinese models offering equivalent performance for 10x lower cost, and near frontier level open weight models to run in house for the cost of the hardware, and this hardware being way more modest, makes the bubble pop a certainty. As with data loss, the question is when, not if.