11–20 of 166 posts
> through September, Anthropic has spent more than 100% of its estimated revenue (based on reporting in the last year) on Amazon Web Services, spending $2.66 billion on compute on an estimated $2.55 billion in revenue. Well I don't have to scratch my head any longer and wonder why Amazon hasn't jumped on the AI bandwagon with their own Gemini or whatever. They are sitting pretty and selling shovels and pickaxes to th…
I think this is a minor speed bump and VC’s believe that cost of inference will decrease over time and this is a gold rush to grab market share while cost of inference declines. I don’t think they got it right and the market share and usage grew faster than inference dropped, but inference costs will clearly drop and these companies will eventually be very profitable. Reality is that startups like this assume moore’s…
> through September, Anthropic has spent more than 100% of its estimated revenue (based on reporting in the last year) on Amazon Web Services, spending $2.66 billion on compute on an estimated $2.55 billion in revenue. Well I don't have to scratch my head any longer and wonder why Amazon hasn't jumped on the AI bandwagon with their own Gemini or whatever. They are sitting pretty and selling shovels and pickaxes to th…
The buried lede: Anthropic: "$2.66 billion on compute on an estimated $2.55 billion in revenue" Cursor: "bills more than doubled from $6.2 million in May 2025 to $12.6 million in June 2025" Clickthrough if you want the analysis and caveats
> Based on discussions with sources with direct knowledge of their AWS billing, I am able to disclose the amounts that AI firms are spending, specifically Anthropic and AI coding company Cursor, its largest customer. so he got a leaked copy of their AWS bills?
> through September, Anthropic has spent more than 100% of its estimated revenue (based on reporting in the last year) on Amazon Web Services, spending $2.66 billion on compute on an estimated $2.55 billion in revenue. Well I don't have to scratch my head any longer and wonder why Amazon hasn't jumped on the AI bandwagon with their own Gemini or whatever. They are sitting pretty and selling shovels and pickaxes to th…
I think this is a minor speed bump and VC’s believe that cost of inference will decrease over time and this is a gold rush to grab market share while cost of inference declines. I don’t think they got it right and the market share and usage grew faster than inference dropped, but inference costs will clearly drop and these companies will eventually be very profitable. Reality is that startups like this assume moore’s…
They haven't though. On two fronts: 1, the soa models have been pretty constantly priced, and everyone wants the soa models. Likely the only way costs drop is the models get so good that people are like hey, I'm fine with a less useful answer (which is still good enough) and that seems, right now, like a bad bet.
and 2 - we use a lot more tokens now. No more pasting Q&A into a site; now people hammer up chunks of their codebases and would love to push more. More context, more thinking, more everything.
> through September, Anthropic has spent more than 100% of its estimated revenue (based on reporting in the last year) on Amazon Web Services, spending $2.66 billion on compute on an estimated $2.55 billion in revenue. Well I don't have to scratch my head any longer and wonder why Amazon hasn't jumped on the AI bandwagon with their own Gemini or whatever. They are sitting pretty and selling shovels and pickaxes to th…
Amazon owns 15-19% of Anthropic. So yes and no.
Earlier quoted context omitted.
Amazon owns 15-19% of Anthropic. So yes and no.
GenAI financing is a flat circle. The bubble bursting is going to have a huge blast radius.
It might take out your 401k for a decade.