Lou Whiteman

Anthropic is throttling people because compute is so expensive.

OpenAI still needs to raise money.

I think the market just needs to wake up to just how much money is needed here.

It feels like one of three things has to happen.

Either, number one, we need models that really dramatically bring down the compute demand, so there's just less that needs to be spent.

Number two, these hyperscalers somehow end up with amazing pricing power from here, even though they're competing with each other, and jack up the prices.

Or, I don't know, maybe these valuations aren't sustainable.

Or at least something that can cover expenses.

I think that'd be a nice first start.

I like what you did there with car parts, by the way, telegraphing our next story.

And maybe that is where valuation can come from.

But yeah, look, if I'm honest, it isn't any one of those three factors or three scenarios that I laid out above.

It's some sort of combination of all of them.

Inevitably, as you say, the tech advances will happen and the cost will come down.

But I also think AI really needs intense compute power, and that compute power, there's limits to how cheap it can get.

That is expensive.

I think the interesting thing from here and how this all plays out is, how far does that cost needle move?

and how quickly, and how that is going to just ripple through all of these customers, what they're going to have to spend, or if they're going to change their assumptions.

That is the real question.

It's somewhere in the middle.