> This is actually a textbook example of markets functioning in response to a demand shock where supply cannot be increased rapidly.

The problem is that demand is being propped up by speculative capital. The AI companies are a bubble that is suffocating productive parts of the market with the hording of capital which they're now using to also hoard hardware. All this without making money for data centres that aren't build yet, for a handwavy promise that an AGI will magically solve all the worlds problems.

This is not normal, and it is not good for the broader economy.