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I could see arguments be made in both ways here. If GPUs end up being more efficient/powerful (like today) it could induce even more demand, but also if CPU gets within ~20% of how fast you can do something with a GPU, people might start opting for something like Macs with unified memory instead of GPUs.

Today a CPU setup is still nowhere near as fast as a GPU setup (for ML/AI), but who knows how it looks like in the future.

> it is unclear that throwing more compute actually expands what is possible

Wasn't that demonstrated to be true already in the GPT1/2 days? AFAIK, LLMs became a thing very much because OpenAI "discovered" that "throwing more compute (and training data) at the problem/solution expands what is possible"



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