Nobody was talking about them betting too much on compute, people were saying that their shady deals on compute with NVIDIA and Oracle were creating a giant bubble in their attempt to get a Too Big To Fail judgement (in their words- taxpayer-backed "backstop").
replyIt really wasn't. Most of the argument was around product portfolio and agentic coding performance.
replyThat’s just short term talk. The main thesis behind their collapse is that they won’t be able to pay their compute bills because they won’t have enough demand to.
replyThat doesn't really track because their compute isn't like a debt obligation.
replyThe compute topic was more around how OpenAI, Nvidia, Oracle, and others were all announcing commitments to spend money in each other in a circular way which could just net out to zero value.