I dont understand, the frontier labs barely own any data centers, how are they securing 3x compute versus everyone else 2x? If they keep spending on training with ever decreasing marginal revenue on new models they go bankrupt and hyperscalers, the true owners of compute will lease it out elsewhere or just lease it out to the highest bidder.
Concentration at the compute layer is not the same thing as lock-in at the customer layer, and EU law has been separating the two since the Data Act came into application on 12 September 2025. Article 29(1) states that from 12 January 2027 providers of data processing services may not impose any switching charges for the switching process. Until that date only reduced charges are permitted, capped at the costs directly linked to the switch. None of that changes who owns the flops. It changes what leaving costs, which is the part of the dependency a buyer can still price.
I dont understand, the frontier labs barely own any data centers, how are they securing 3x compute versus everyone else 2x? If they keep spending on training with ever decreasing marginal revenue on new models they go bankrupt and hyperscalers, the true owners of compute will lease it out elsewhere or just lease it out to the highest bidder.
This doesn’t matter if there is 100x more compute. Its a Pareto improvement across the board.
Concentration at the compute layer is not the same thing as lock-in at the customer layer, and EU law has been separating the two since the Data Act came into application on 12 September 2025. Article 29(1) states that from 12 January 2027 providers of data processing services may not impose any switching charges for the switching process. Until that date only reduced charges are permitted, capped at the costs directly linked to the switch. None of that changes who owns the flops. It changes what leaving costs, which is the part of the dependency a buyer can still price.