Casey Handmer

So we're not talking about the fuel.

We're not talking about the heat exchanges.

We're not talking about the cooling ponds or anything like that.

Just the amortized cost of the high-speed, high-temperature spinning components is $35 a megawatt hour.

Do you think the hyperscalers are being irrational, or do they have some reason?

Oh, to be clear, they don't care about cost.

For cost of power, this seems extremely, like, it's very counterintuitive.

So for, like, Grandma Kettle in Pennsylvania, she's very sensitive to electricity cost, and we don't really want her to, like, suffer in her retirement from...

unaffordable electricity costs and having to sit there shivering.

That's not the image that we want.

At the same time, what is the economic value to you of using, I don't know, Claude or Grok or whatever you use on a monthly basis?

A lot, yeah.

But it's obviously much more than the subscription, but is it like 10 times more than the subscription maybe?

Okay, so let's say the subscription is on the order of 10 bucks, the value is on the order of 100 bucks, no, actually probably like 100 and 1,000.

How much does it cost...

XAI or Anthropic or whatever to serve your usage.

And the cost of electricity is about 10% of that.

So it's like 10 cents of electricity is generating $1,000 worth of economic value.

So it's very obvious that Anthropic could be like, our electricity cost basis is increased by a factor of 100.

And now instead of paying 10 cents on your $100 bill for power, you're paying 10 bucks.