No. If models become better, the natural expectation is for hardware to get more valuable, not less. (The hardware that was previously able to achieve X can now do 2X. Why would that make the hardware worth less?)

Likewise if models become commoditized, it's raising the value of the existing hardware (you'd expect the hardware owner to keep a bigger slice of the surplus when that's the scarce component).

For model improvements to be bad for the value of hardware, what you'd need is for demand for intelligence to be inelastic. But everything we've seen so far suggests that is not the case: the demand for intelligence (whether human or artificial) is highly elastic both in price and in quality.

its a false equivalence.... the dotcom boom wasnt just a fibre rollout, it was all the internet company startups that were overpriced and crashed. no doubt some of the hyperscalars will get busted out, but the models and LLMs are here to stay. just like dot com websites didnt disappear after the dot com crash, neither will AI transformer models

All of this spending only has a chance of paying off if video generation takes off.