41–50 of 166 posts
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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.
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You're describing increased spending while calling it increased cost. These aren't the same thing. A task that cost me $5 to accomplish with GPT-4 last year might cost $1 with Sonnet today, even though I'm now spending $100/month total on AI instead of $20 because I'm doing 100x more tasks. The cost per task dropped 80%. My spending went up 5x. Both statements are true. Here's an analogy you may understand: https://c…
Fwiw that's not necessarily true, because if Sonnet ends up using reasoning, then you are using more tokens than GPT-4 would have used for the same task. Same with GPT-5 since it will decide (using an LLM) if it should use the thinking model for it (and you don't have as much control over it).
One day we will westerners will learn why the Chinese are releasing models that are optimized for cost of training n yet good enough to run locally or cheaply. when the music stops, suddenly a lot of people won't just sit on the ground but plunge into the depths of hell.
One day we will westerners will learn why the Chinese are releasing models that are optimized for cost of training n yet good enough to run locally or cheaply. when the music stops, suddenly a lot of people won't just sit on the ground but plunge into the depths of hell.
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They survived the dot-com bubble, I don't see the AI bubble taking out Amazon. It might take out your 401k for a decade.
I'm on like my fifth once in a generation financial crisis. At a certain point you just expect it.
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…
> inference costs will clearly drop and these companies will eventually be very profitable. Inference costs for old models will drop, but inference costs may stay the same if models continue to improve. No guarantee that any wrapper for inference will be able to hold on to customers when they stop selling $1.00 for $0.50.
> 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 trained their own models like Nova and has AI coding assistants like Amazon Q, but I don't know anyone outside Amazon who is using them.
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
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GenAI financing is a flat circle. The bubble bursting is going to have a huge blast radius.
this is the latest mantra from people who have missed the boat. i'm like lol do you think that industry didn't learn anything (about financing structures) from the last one?