[arder]

This is only a partial solution to a problem though. If x ai fails to build a good model they rent to Google. But that means all these companies are incentivised to build as much compute as possible. If they win their margins look great, if they lose they still make money. BUT at some point aggregate supply will outstrip aggregate demand and the bottom will fall out of the market.

[dpacmittal]

By the time bottom falls out, they will all have done their IPOs and offloaded the risk on to the public. Govt will be forced to bail them out.