281–290 of 306 posts
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They only reason that they are retaining value is there was not so much demand for GPUs in 2021 as there is today. Once the demand drops you will find then in dumpsters across our barren, burning dystopia.
Why are you assuming the demand will drop?
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I'm referring to the equity offering that started in June and has a second component that starts in 2026Q3. Most of this raise came from the sale of Class A and Class C stock. A fraction came from the sale of convertible stock. To my knowledge, none of this raise came from the sale of bonds. Also, looks like I got it wrong and they've only raised $45B to date. The rest will come as part of the ATM offering program th…
sorry, my error. Bonds was $31.5 billion https://www.reuters.com/business/alphabet-sells-bonds-worth-...
So tired of media doomposting and exaggerating everything.
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Too big to fail now, so everything is fine.
They've literally rated the debt as too big to fail in order to get foreign sovereign wealth funds (mostly gulf states) to agree to put up the money for loans. This has been happening this entire time.
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Isn’t that the same bet that famously profitable companies like Uber did in the ride share market?
It's not the exact same bet, but it rhymes. It worked out for Uber, they are wildly profitable now after spending a decade losing money. Also worked out as Amazon managed to outlast all the dotcom era e-commerce competitors while being unprofitable.
Uber have a 10% margin, which is definitely not what I'd consider wildly profitable. (Their post tax numbers look better, because of accumulated losses).
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You're making a classic philosophical error here by accidentally anthropomorphizing companies :) A company losing out on a risky bet and failing, letting a new upstart rise up is pretty natural. A large fraction of experts from the failed companies continue at the new ones, business as usual. There are engineering teams at $BIGTECH now full of OS, database, or compiler experts from XP, Sun, HP etc. This natural abili…
Companies are run by people, 100 billion dollar companies are ran by people who want to stay billionaires and will street accordingly. But I'm not sure what we're disagreeing on, yes the talent will migrate, AI industry will eventually settle on some none bubble equilibrium, but that doesn't mean current AI economics is sensible, or inflated hardware costs beyond yield is not danger indicator. Like yeah, risky bets a…
It's independent of the former, but not the later. That is my point.
Businesses and business models fail all the time, does not mean the 'broader economy is going to explode'.
It could, sure. But that has been predicted several hundred times and happened only a few times.
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"Anthropic and OpenAI generate a lot of revenue with relatively few employees – an estimated $9M and $5.5M in revenue per employee (RPE), respectively. If either company were to go public, it would have a higher RPE than any public tech company on Forbes’ Global 2000 list." https://epoch.ai/data-insights/revenue-per-employee-ai-compa...
Each one of those employees maps to several fold times more spending on compute.
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"Anthropic and OpenAI generate a lot of revenue with relatively few employees – an estimated $9M and $5.5M in revenue per employee (RPE), respectively. If either company were to go public, it would have a higher RPE than any public tech company on Forbes’ Global 2000 list." https://epoch.ai/data-insights/revenue-per-employee-ai-compa...
The guy who sells $20 bills for $10 also generates a lot of revenue