The Great AI Silicon Shortage
newsletter.semianalysis.com · 2,540 words · saved by 1 readers
TSMC N3 Wafer Shortages, Memory Constraints, Datacenter Bottlenecks, Supply Chain Wars Winner
Token demand is skyrocketing and the need for AI compute continues to accelerate. The improvement in model capabilities combined with the rapid emergence of agentic workflows has driven a surge in user adoption and aggregate token demand. Anthropic added a staggering $6B of ARR in the single month of February alone driven by broad adoption of agentic coding platform Claude Code, and if Anthropic had more compute they would have added more. Despite a huge AI infrastructure buildout over the past few years, available compute is scarce. On-demand GPU prices continue to go up even for Hoppers…
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