The news that seems to have been missed but means a whole lot more than Meta
I feel like most people focused on meta while missing the bigger news. This isn't some small amount of excess compute, SoftBank is planning 10gw of power and investing huge. While meta is a rumour this is a confirmed plan and puts a whole heaping bucket of cold water on the AI story for neoclouds. If the market is spooked about over building this headline surely is what actually caused such a big drop. It's becoming clear that only open AI and Anthropic have the products people are really using so ultimately all that matters is who they get their compute off. Xai quit, metas quitting, eventually ittl all flow to them.
Just a thought ive been scratching my head looking for the real reason we dipped and I think this has more weight than meta, sure the idea of a customer becoming a competitor is scary but ultimately it's an unconfirmed rumour. This is real news and will be weighing on where the real money flows from.
https://finance.yahoo.com/technology/ai/articles/softbank-plans-ai-cloud-services-073106168.html