Chamath: major US bank cut AWS and GCP spend, built six self-run data centers
SumitGup · x · 2026-10-24
Chamath Palihapitiya shared two industry signals in an interview:
Data sovereignty drives self-building: A major US bank has cut AWS and Google Cloud spending and built six completely independent ground-up data centers. He notes buying patterns shifted after Alex Karp's data sovereignty commentary on CNBC, with large companies building their own data centers or moving into VPCs.
VC funding circularity: VCs raise from pension funds and LPs, invest in startups, which consume other companies' AI services to show revenue traction, then raise more from the same VCs. This circularity is the AI diffusion problem Ken Griffin flagged: for AI to scale as a predictable driver of long-term earnings, it must truly diffuse through the economy.
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