On the All-In episode released on 17 October 2026, with Ben Horowitz filling in for David Friedberg, the panel opened with the week CoreWeave’s bonds cracked. Horowitz brought the best story of the show, from 1999, when he and Marc Andreessen were running Loudcloud. Bandwidth was scarce, he said, so you signed long contracts to lock it in. He remembered bandwidth costing about $1,500 per megabit in 1999 and seeing it at about $50 by 2001. His conclusion, if you held bandwidth and “you borrowed money to get it, you’re dead.” He described today’s neoclouds as Rube Goldberg machines of finance, and said a16z had stayed out of them partly for that reason. Then he drew the line that made the clip travel. The dot-com era died of missing demand, he argued, and AI does not have that problem. In his words “We don’t really have a lack of demand in AI.” He said Andy Jassy had told him Amazon’s compute could stay sold out to the end of 2028 or beyond, and that GPUs are earning money for six, seven, even eight years, longer than investors had assumed. It is a good parallel and I want to take it seriously, which means testing both halves. The first half, that debt plus a falling unit price kills capacity owners, holds up. The second half, that demand is the shield, does not. Internet traffic did not stop growing in 2001. It roughly doubled every year right through the bust. The bandwidth owners were not killed by a lack of demand. They were killed by supply that grew faster than an already enormous demand, which turned into a price that fell every year, which met debt that did not. So the useful question about AI is not “is the demand real?” It obviously is. The question is the one that sank Global Crossing which is ‘can supply outrun even real demand, how fast does the unit price fall when it does, and who is holding the debt on the day it happens?’ Continue reading here: https://cycledesk.substack.com/p/internet-bubble-vs-todays-ai-buildout?r=7unzzg&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true
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