Is that a problem for Meta though? They recently announced they're going to sell their excess compute, so I imagine the actual problem is they're resorting to doing that because AI isn't having nearly the effect/usage it was supposed to and now Zuck is being a sore winner about it
If Meta is selling their compute and Twitter is selling their compute and the stuff doesn't do anything you don't need an economics degree to figure out what's going to happen to the price of compute. In particular because 'compute' is a euphemism given that this is far from general purpose capacity, those are specialized chips that largely do one thing
All these companies are going to sit on their gazillion data centers once the mania dies down and will have a big problem about what to do with their mountain of hardware
well, Google refused to increase Meta quote of tokens, even Google can't supply so many (paid) tokens as Meta is burning
I agree, i don't think it is the core problem.
Meta doesn't seem to be able to produce anything close to a frontier model. The selling of compute capacity seems to be acceptance of "compute is wasted on this crappy avocado model, we'd be better off allowing something better to run".
The problem is clearly in the model architecture, the training and the data fed into the model which is causing them to give up on using their compute exclusively for their own models. They can't get it right so may as well sell the compute to someone that can.