The AI Daily Brief · Friday, October 23, 2026
Gartner released a report claiming that 80 percent of neoclouds will go bankrupt by the end of 2030, resulting in $3.5 trillion in AI infrastructure spending facing impairment due to a lack of demand. Gartner's chief forecaster John Lovelock stated on CNBC that compute capacity currently exceeds demand.
“At the moment, we have more compute capacity than we have demand.”
“And we have a lot of the tokens and processing power being given away in freemium solutions. Everyone in the AI race is running for a last man standing position.”