I suspect major algorithmic breakthroughs would accelerate the demand for GPUs instead of making it fall off, since the cost to apply LLMs would go down.
> The proposition that technological progress that increases the efficiency with which a resource is used tends to increase (rather than decrease) the rate of consumption of that resource.
There will always be an incentive to scale data centers. Better algorithms just mean more bang per gpu, not that “well, that’s enough now, we’ve done it”.
> The proposition that technological progress that increases the efficiency with which a resource is used tends to increase (rather than decrease) the rate of consumption of that resource.
See also Wikipedia: https://en.wikipedia.org/wiki/Jevons_paradox