Earlier quoted context omitted.
Yes? What happened to FAANG in last 3 years, they cut a fuck load of jobs, the raised rent/prices, then inflation, then experience surge in new category AI. 1 + 2, i.e. squeezing rock has limits. 3 is fundamentally not sustainable, i.e. AI revenue gap order of magnitude relative to spend. This like debt crisis, there's lot of levers to burn to maximize extraction and make ledger look good short term, but is fundament…
Hasn't AI been horrible for FAANG fundamentally? - They've all been compelled to build the same horribly expensive AI infra, to serve similar models that have no ability to lock-in customers - Google Search has to compete with LLMs - Meta hasn't demonstrated a credible argument on how they're planning to use AI. AI 'friends' would kill their business model. Their saving grace ironically is that people absolutely hate…
Emphasis added, since having a horribly expensive AI infra allows offering enterprise contracts, which is a form of lock-in and has been pretty lucrative for GCP/Azure/AWS.