Source: The New York Times
The computational substrate for AI is accelerating faster than most infrastructure timelines can absorb. Epoch AI's nine-month doubling rate means the installed base of AI chips will outpace demand for practical applications, creating a glut that pressures pricing and forces chip makers to justify capacity investments through either new use cases or geographic expansion into developing markets. Companies face a narrow window: lock in proprietary workloads at current costs, or risk commoditized compute that erodes margins across the AI software stack unless they've built defensible applications on top.