The cut backs are necessary because of, "cash flow negative over the coming years before the spending begins to pay off in 2030 ". That's a nerdy way of saying we are losing our ass because of over investment and lack of customers. They plan to raise another $50B this year to keep the ball in the air. That is an awful lot of debt to cover until 2030. It takes magical thinking to believe that on day certain, 2030, income is going to exceed expenses.
I find this astonishing, but I heard that there are over 5,000 data centers on line or under construction in the country. That represents 45% of all the data centers in the world. Just how much AI is enough AI? There is only a finite number of potential AI users. When you slice that pie into 5,000 pieces you have to wonder how any organization can pay the debt and make a profit. It sounds like we might hear a lot more about "cash flow negative". You can't invest billions with returns in the millions for long and survive.
And let's set aside the cost of building electric infrastructure to power these data centers. Some of these outfits are proposing building their own dedicated nuclear (or fusion???) power plants to power these monstrosities. Utterly ridiculous!
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