Reactions to the new DeepSeek-R1 AI model suggest that we may no longer need billions of dollars in compute hardware.
Software improvements and faster algorithms discovered in the Exascale Computing Project led to significant speedup, allowing for larger problem-solving.
Faster algorithms may actually increase the demand for newer and faster hardware, depending on the significance of the problem being solved.
There is no simplistic argument that faster algorithms and implementations necessarily lead to lower spend on computing hardware.