AI Infrastructure: Capacity Glut, No Apps, AWS Sold Out
A recurring cross-source debate: AI compute capacity is being built at an extraordinary pace (AWS sold out through 2028), yet the killer apps remain elusive. Simultaneously, low-cost AI providers are destroying frontier lab margins.
What we know
An account on X draws the direct parallel between the old crypto TPS debate and the new AI TokPS debate: 'where are the apps?' AWS CEO Andy Jassy tells another account on X that 2026 is 'sold out,' 2027 'largely sold out,' with shortages in data centers, power, and memory expected past 2027. Yet another account on X cites Citadel Securities arguing low-cost AI 'carriers' are eating frontier labs alive with margin destruction. Another account on X amplifies Jensen Huang's thesis that 'nobody writes prompts anymore' — engineers building loops and graphs are 'years ahead.' Leaked AI lab rumors suggest OpenAI's reasoning gains come from aggressive RL in simulated environments, and another account on X notes AI credit stress (CDS on $NBIS, $CRWV) is beginning to heal after the first real crack.
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.