Why Wall Street is ignoring big tech's debt [video]

Post by tristanj » Sun, Aug 09, 2026, 5:31 PM UTC

root-parent wrote: post #88

WarmWash wrote: post #9

I don't know a single white collar worker who isn't using AI for their job. Not like forced, but like "Oh damn, this bot thing can do a lot of tedious leg work for me". To think that people won't pay $60-$80/mo to continue using it is wild to me. In a white collar environment it pays for itself in a few hours of use. If you focus on how much value AI brings to people (mostly in time saved), the bubble hardly looks bu…

Google funds Anthropic | v Anthropic promises to rent Google's TPUs | v Google guarantees the infrastructure needed to fulfil Anthropic's promise | v Wall Street lends against Google's guarantee | v Borrowed money buys Google-designed TPUs | v The TPU purchases "prove" demand for Google TPUs | v Anthropic's compute capacity and valuation rise | v Google's investment in Anthropic rises in value | v Higher valuations j…

Post by stackskipton » Sun, Aug 09, 2026, 5:40 PM UTC

intended wrote: post #50

porridgeraisin wrote: post #36

Earlier quoted context omitted.

> Even adding something like $20 - $100 subscriptions to every user is a serious enough financial obligation that it needs to go through budget planning / boards I doubt that. In my tiny town in India, office workers use the 1800 INR (20$) plans. 1800 INR/month is like... 4% of the salary these guys get. And since this is mostly MS-office and windows explorer and chrome based stuff in very small, non-tech companies,…

I remember the piracy era, and it used to be a joke whether anyone could actually stop it. Eventually MS dealt with piracy by going after firms, and finally by offering something cheap enough. Between the legal aspects, and the fact that its MS office, paying Rs 1800 a month is possible. I’ve been trawling every source I can find to understand what the story on the ground is, and when it comes to productivity it’s a…

Post by stackskipton » Sun, Aug 09, 2026, 5:42 PM UTC

tristanj wrote: post #91

root-parent wrote: post #88

Earlier quoted context omitted.

Google funds Anthropic | v Anthropic promises to rent Google's TPUs | v Google guarantees the infrastructure needed to fulfil Anthropic's promise | v Wall Street lends against Google's guarantee | v Borrowed money buys Google-designed TPUs | v The TPU purchases "prove" demand for Google TPUs | v Anthropic's compute capacity and valuation rise | v Google's investment in Anthropic rises in value | v Higher valuations j…

Anthropic has 80%+ margins on inference. Google has 30%+ margins on compute. Both parties have discovered a literal money printer. The payback period is At those unit economics, anyone not borrowing aggressively here to create more money printers is a moron.

Post by tristanj » Sun, Aug 09, 2026, 6:00 PM UTC

stackskipton wrote: post #95

tristanj wrote: post #91

Earlier quoted context omitted.

Anthropic has 80%+ margins on inference. Google has 30%+ margins on compute. Both parties have discovered a literal money printer. The payback period is At those unit economics, anyone not borrowing aggressively here to create more money printers is a moron.

>Anthropic has 80%+ margins on inference. That's like saying my delivery company is profitable because with current gas prices, my margin is 80%. Yea, what about all money you spent to get there? You still profitable then?

Post by stackskipton » Sun, Aug 09, 2026, 6:07 PM UTC

tristanj wrote: post #97

stackskipton wrote: post #95

Earlier quoted context omitted.

>Anthropic has 80%+ margins on inference. That's like saying my delivery company is profitable because with current gas prices, my margin is 80%. Yea, what about all money you spent to get there? You still profitable then?

Yes, actually. Anthropic has gross margins of 40%+, hit $75B ARR last month, and (as of this quarter) is profitable.