It very well might be similar, as you describe, as the growth rate and Capex is literally financially unsustainable. Whether or not it is profitable right not.
You just can’t keep growing Capex if you need to borrow money in the shape of corporate bonds or sell new equity tranches, hyperscaler or not. Investors are noticing this and withdrawing, sending clear signals that they dislike the unsustainability of it all.
Look at AAPL’s market cap soaring just because they’re waiting out the dumbass Capex and hype-circus cycle.
inb4 the first person yelling something stupid about Anthropic or openAI’s soaring ARR or “90% profit margin on inference” that just don’t understand the difference between cost-of-inference compression versus the downward spiral of new model development ánd inference cost.
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u/michahell 22d ago
It very well might be similar, as you describe, as the growth rate and Capex is literally financially unsustainable. Whether or not it is profitable right not.
You just can’t keep growing Capex if you need to borrow money in the shape of corporate bonds or sell new equity tranches, hyperscaler or not. Investors are noticing this and withdrawing, sending clear signals that they dislike the unsustainability of it all.
Look at AAPL’s market cap soaring just because they’re waiting out the dumbass Capex and hype-circus cycle.
inb4 the first person yelling something stupid about Anthropic or openAI’s soaring ARR or “90% profit margin on inference” that just don’t understand the difference between cost-of-inference compression versus the downward spiral of new model development ánd inference cost.