The people who paid for the data centers will go bankrupt, the data centers themselves will be sold for pennies on the dollar, but then the people who bought those data centers for pennies on the dollar will be able to make profit renting inference for a lower price than those original investors could have sustained themselves on. So I'm expecting there'll still be plenty of AI horsepower churning away, it'll just be doing it more cheaply and not doing it under the banners of the current incumbents.

First movers often fail in this manner, they spend a lot of money making mistakes and discoveries that later followers can make use of for cheap.