Only last year Microsoft admitted to having GPUs in inventory that they couldn't power, due to a lack of electricity. So much of this production capacity could very well go into making memory chips for GPUs sitting in a warehouse.

The amount of money spend on the AI hype train is crazy. Meanwhile we're wasting fab time making chips that might never be powered on. It's absolutely insane that there are more money to be made on hardware for AI that may never be used, rather than producing a product that consumers and businesses need right now.

But wait, I thought we all agreed that capitalism is the most efficient way to distribute goods in an economy!

By goods you mean wealth vertically to the oligarchs, then yes.

I'd argue that this is a form of financial engineering that is somewhat removed from "true" capitalism.

Don't worry, the Trump administration is addressing this by lifting pollution limits for data centers.