The Datacenter bubble will pop, since token-based billing isn’t going to work. Nobody wants to pay full-freight for AI.
Jensen needs to move product, so a return to the desktop with local models makes sense.
Yes, this is a survival move. A bunch of manufacturers dumped producing consumer products in favor of the more lucrative Server Farm market. It is interesting that Nvidia seems to be adjusting their priorities. Of course, the Spark products are high end with 128GB of high bandwidth Unified Memory.
The evaluations look like everyone is ignoring the Experience Curve of economics:
Every doubling of cumulative output → unit costs drop 20–30% → prices usually follow downward in competitive markets.
I wonder how token prices can remain high enough over time to pay for this massive hardware build out.