The report indicates that as small language models improve in performance and decrease in cost, enterprise AI deployments may shift from centralized cloud to localized solutions. This could put pressure on the estimated $990 billion in combined cloud computing demand and data center capital expenditure projected for tech giants like Meta, Google, Amazon, and Microsoft by 2027. Recently, AI server utilization has been observed to drop by 26%, and Meta is actively seeking external clients to utilize its computing power, reflecting that utilization has become a new issue amid the rapid expansion of infrastructure supply.