Key insights
- The post questions Anthropic's valuation, highlighting concerns about the high costs of compute infrastructure and datacenter construction relative to revenue. It suggests the company's growth strategy, which relies on continuous reinvestment in compute, may be unsustainable given current financial constraints. This raises concerns about the long-term viability and profitability of AI companies heavily reliant on expensive infrastructure, potentially impacting investor sentiment in the AI sector.
I cannot work out the math behind anthopic, can someone tell me the plan behind it, i trying to calculate the profit margin and although account for that, and reinvesting for more compute, we still dont have enough compute to serving that much AI, its like a snake biting its tail, growing -> more compute -> build more datacenter -> growing, but the problem is that the biggest datacenter projected to be built which intended to be built in Utah by Mr.wonderful cost more than what we can pay, the math can be a bit complex but as my calculation, the sum of top 10 billionaries cant even paying for that datacenter to be built, maybe they want it to be 'the line' as in the UAE, but the scale is much more implausible. With all those above, how can anthropic intended to get out of it?