The big AI lie is that compute capacity is scarce. The fraud was propped up by SpaceX announcing big rental deals with "friends" (google a big owner of spacex, with deal 1 week before IPO) that have massive exit clauses for the buyers.

AI hype started with Meta/Xai needing all of their compute for their own AI ambitions, and that was the source for compute scarcity. That they have no special competency means that they resell their compute, is flooding an already well supplied compute market.

Meta pops 9% as company makes cloud push to sell excess AI compute power capacity

The new business is a welcome signal for some investors who have been uneasy about the company's infrastructure spending plans.

^{Ashley Capoot (CNBC)}