Or will more efficient algorithms just mean we run even more AI models, increasing the demand for AI chips even more?

Better algos = more demand

Memory squeeze will get worse before it gets better.

I heard Greg Brockman on a podcast saying they are limited by computer and memory. They have line of sight in solving many different kinds of problems. But they also have to survive in the meantime. Hence the focus on enterprise recently. They could just ask Government to fund them doing other research areas