The AI hype is creating some truly strange bedfellows.

Former competitors are now joining forces to meet the insane demand for computing power. Case in point: Anthropic (the company behind Claude) has reportedly rented Elon Musk’s entire Colossus 1 data center — that’s 220,000 GPUs and 300 megawatts of power.

xAI retains ownership, but Anthropic gets all the compute. Meanwhile, xAI has moved its training to the even larger Colossus 2.

It reminds me of the dot-com bubble in the late 1990s, when companies like WorldCom, Global Crossing, and Level 3 built out enormous fiber optic networks with massive debt. When the bubble burst, there was a huge surplus of bandwidth. Much of the fiber lay “dark” for years, and prices collapsed.

That overbuild later became a gift to Google, Amazon, and the entire internet economy.

History doesn’t repeat, but it often rhymes.

The big question is: who will ultimately benefit from today’s frantic AI infrastructure race? And who will be left holding the bag when the music stops?

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This is a new post on the new dewlar.me blog.
You can find the old blog here:https://mrsdewlar.blogspot.com

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