The circular funding is concerning, but more concerning are suggestions that supply might be vastly exceeding demand. Not that people don’t want chips but that the chip production now exceeds the ability to power them up and use them. The shortage is power and racks in data centers ready to go. Folks are running numbers suggesting there’s a bunched chips now just sitting around.

That, combined with some cooling from an AI hype bubble burst (see separate articles about companies missing quota as folks aren’t buying as much AI as the hype hoped) and there’s a potential ugly future where the headline demand plummets in top of idle chips waiting to be powered on. Suddenly the market is flooded with chips nobody wants.