The narrative around compute "selling" seems a bit overdone for the neoclouds. From what I see, big tech is still constrained by power availability, not by a lack of demand. For instance, $Alphabet(GOOG)$ is already limiting internal allocations, which really highlights how tight supply is.
Looking at $Meta Platforms, Inc.(META)$ , they're still sourcing bare metal from $CoreWeave, Inc.(CRWV)$ and $NEBIUS(NBIS)$ , which doesn't suggest they have excess capacity in the mid-term. A lot of the talk about "excess compute" might be misreading temporary capacity shifts at other AI players.
The core bottleneck still seems to be power and infrastructure. $Meta Platforms, Inc.(META)$ 's edge, at least for now, appears to be in software, particularly its ad systems. The demand case for neoclouds, tied to platforms like $IREN Ltd(IREN)$ , still aligns with the current AI infrastructure buildout rather than being displaced by it.
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