It supports his point that they're planning to massively overbuild compute, which was already well supported by the financials. A lot of that planned compute buildout can be walked back though, and the technology is unquestionably useful in moderation, so it's not the catastrophe he suggests, and his hyperbole is part of what makes me dislike him even if there are elements of his foundational argument I agree with.
"Chinese models are dirt cheap" isn't going to do anything good for the return the investments in OpenAI and Anthropic demand.