Price of AI is going way up in the short term. Breaking down the economics of AI #ai #anthropic

How is it possible that, and let's just use Anthropic, as they seem to be the, they seem to be the kind of, you know, ultimately, they are the barometer where we are of AI right now. Yeah. How is it that they're only able to increase their compute, so effectively, their capacity to deliver AI, by 3X but their revenue is able to go out by 10X. What that is as a data point, right, so when they go in, 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, and yet their revenue is going one billion to 10 billion and it looks like it's about to go 10 billion to 100 billion next year and And they were already running at max capacity, exactly. So it's not and then of maybe there's just a lot more like, exactly, a lot more usage. So with that in, with those things that we know to be true as facts, you've got a very hard data point there that so far, being able to increase the price has not been a problem. Yeah. And then there's a question underneath that of how much of that increase in price are they retaining as their own margin versus how much are they just having to pay to the actual computer providers, so the providers of data centers and chips. Yeah. Um, because we also know that the price of compute and the price to rent out, you know, GPUs, rent out the chips for AI is increasing as well, you know, you look at the spot prices, you know, it's going up maybe kind of 40% since April, I think was the data on that. So again, you've got another hard data point that suggests, okay, you know, prices are going up pretty steeply. You know for sure that their cost based on the compute is probably going up, you know, maybe 30, 40% over the last few months as well. So we won't know the exact kind of split of that margin, but we also know that Anthropic's gross margins in general have gone up from kind of low tens to, in some reports upwards of 78%. So you've got a fairly again, fairly solid data point that suggests they're able to retain a lot of that margin. Yes, the cost base is going up, but it seems, you know, relatively, you know, believably that they're able to retain most of it.