There are signs that the money faucet is being turned down. Various investments that were announced have been quietly canceled or reduced in scale. I don't think it'll happen soon, but it seems unlikely to be more than a couple years. If I were a betting man, 12-18 months seems right. The AI companies that can make enough money will survive, the ones running on investor cash and debt, won't.
Efficiency is improving, both in hardware and in software and in intelligence density (smaller models can effectively do more of the AI work that needs doing), so I think the pure data center plays will falter. If there isn't some other business attached, they're never going to recoup their investment. Anthropic and OpenAI are buying all the compute they can find right now, but efficiency gains, especially those coming out of Chinese labs where they must be more efficient to compete, will make it less and less of a problem.
I mean, think about the hardware we use for AI. It's basically an accident. GPUs were not designed for AI (though they are becoming more focused on AI). The specialized AI hardware industry is just ramping up.
So, we're still early in the curve for how efficient both the hardware and software can be at performing these tasks, and given the effectiveness of recent very small models (e.g. DeepSeek V4 Flash 0731 and Qwen 3.8 27B), I just don't see a long future for giant data centers built around billions of dollars worth of last years graphics cards. As with the crypto mining operations, at some point, it becomes more expensive to run the hardware than it makes in revenue. And, as with the crypto mining operations, when the money dries up, the hardware hits eBay and prices drop.