This is all basically a textbook example of irrational market decisions. There’s clearly a bubble and not enough money coming in to pay for the AI bonanza.

It’s building materials being in short supply when there’s obviously more houses than buyers. That’s just masked at the moment because of all the capital being pumped in to cover for the lack of actual revenue to pay for everything. The structural mismatch at the moment is gigantic, and the markets are getting increasingly impatient waiting for the revenue to materialize.

Mark this post… in a few years folks will be coming up with creative ideas for cheap storage and GPUs flooding the market after folks pick up the pieces of imploded AI companies.

(For the record, I’m a huge fan of AI, but that doesn’t mean I don’t also think a giant business and financial bubble is about to implode).

> in a few years folks will be coming up with creative ideas for cheap storage and GPUs flooding the market

COVID was six years ago. In that time, GPU prices haven't gone down (and really have only increased). Count me skeptical that there will be a flood of cheap components.

Is there an industrial bubble? Probably.

> It’s building materials being in short supply when there’s obviously more houses than buyers.

That I think is a hard one to prove and is where folks are figuring it out. There is obvious continued demand and certainly a portion of it is from other startups spending money. I don’t think it’s obvious though where we are at.

More reckless and irresponsible than irrational.