Current trend in AI pricing seems unsustainable and too good to be true
Current trend in AI pricing seems unsustainable and too good to be true
Description
Co-founders discuss why the current trend in AI pricing and revenue growth is unsustainable
Transcript
I don't I don't think it's gonna keep going up that way. They they they've been able to do it so far successfully, but I think they're gonna get to a point where because people want to do so much more, people are gonna have to find a solution. Yeah, and really we're going economics 101 really, right? Because we're for this for this segment obviously we're focusing on the price, and I think obviously the other vector we're going to have to come to later is the volume, right? Um on the price side there's a few things that I think are a little bit unique about this market versus prior transformations and and prior innovations. When I look at the market that we have today the the intensity of the choke point and the scarcity seems to be increasing over time. So one of the questions at the minute is how is it possible that and let's just use Anthropic, cause they seem to be they seem to be the kind of, you know, ultimately they're the barometer of where we are with AI right now. Yeah. How is it that they're only able to increase their compute, their capacity to deliver AI, by 3x, but their revenue is able to go up by 10x? What that is as a data point, right? So when they're going there they've only got you know an extra few gigawatts of power to be able to deliver, or compute, with powered compute to be able to deliver the AI.

