#ai #claude #technology

And the reason this is interesting is because as as you were starting to allude to, the return and all that investment so far is now starting to show signs that it is going to be astronomical. So if you look at Anthropic at the model layer, yeah. They're now starting to go from negative gross margins, and everyone was laughing, saying this isn't even going to be a business, you're just burning cash, to 70 80% gross margins allegedly, from what we understand on the private sources. So at that kind of level and rate of return on the investment, if you if you can invest in someone that's going to generate 80 you know 78% gross margins, net margins, I'm sure they're not being um published yet, but we're sure they're going to be relatively healthy as well. Knowing that this is the most transformational technology in history, knowing that it is growing 3 or 4x quicker than any other transformation in history by revenues, why would you bother to invest in anything else, or any other asset class, when you know that, we've got the full invisibility of the demand, and we know in general the rate of return. The question then on you know, have we got enough debt or have we got enough money to fund the build out changes from have we got enough money to who is actually going to be provided in this capital? Now a really interesting development this week is that in video founder of Jensen, founder of Nvidia, has been going around all these banks and asset managers, of Black Rock uh Blackrock, Blackstone, KKR, Goldman uh private equity as well amongst them and has been saying look, AI compute is now an asset class, an investable asset class that you should put funding and debt and credit into, because of the rate of return that you're gonna get on it. Which is it's a slight shift and I think it's because he's seen that when you look at the market and you look at the cash that you know all the hyperscalers, that your Google's, Amazon's, Meta's, were using to fund the build out, is running out. It is running out. And so now that that that cash is running out and they're starting to turn to debt, he's thinking far over ahead