Comment by JacobAsmuth
3 days ago
It's because their datacenter businesses are growing so fast YoY. Why do you care about the difference in a few percentage points of interest if you're getting 37, 41, or even 82% returns YoY?
3 days ago
It's because their datacenter businesses are growing so fast YoY. Why do you care about the difference in a few percentage points of interest if you're getting 37, 41, or even 82% returns YoY?
Correct hyperscalars are doing fine - as it stands.
The problem is OAI/Anthropic - but if OAI and Anthropic fail the whole thing comes apart. Goog, Meta etc will be fine as they had tremendous cash flow generating operations prior to datacenter offerings w.r.t LLMs.
If OpenAI and Anthropic somehow become insolvent to the point that they are unable to continue running inference on their existing trained models, their tens of billions of dollars of monthly revenue will need to go somewhere.