I'm not sure if they should vertically integrate, it would probably be a better idea to directly fund the expansion of capacity, much like Apple does when they scale up a new technology for iPhones.

However, that the hyperscalers and AI companies aren't doing this says a lot about their true beliefs about how much future demand AI will have.

AI companies claim they will need a ton of massive expansion, but are unwilling to take on the risk of the capital needed for that expansion.

I'm hearing a lot of sad whining from AI folks about how these chip makers are holding them back, but who actually has the money to finance the expansion easily? Chip makers have been through this game far longer, when Sam Altman went around claiming it was time for $7T of fabs the AI companies made it clear that they were willing to make ridiculous claims, eliminating credibility.

What's needed now is for them to funnel a tiny amount of their massive piles of cash into financing fabs directly.