[ai-x]

Just a reminder, Ed Zitron is neither an AI researcher, nor an Engineer, nor a Financial Analyst, nor an Economist nor an Insider and has ZERO clue in multiple dimensions (technology, investing, unit economics, growth, TAM) to analyze any of this

[AznHisoka]

>> nor a Financial Analyst, nor an Economist

Those people arent exactly experts or right most of the time either

[ai-x]

If Ed is neutral or an expert, he would have had the following analysis

"What is the unit cost of serving a Token? It is the cost of electricity + amortized cost of GPU (GPUs would have been Capex, but because of their fast depreciation rate, you can claim they should be Opex). Given this cost structure, every SOTA labs (Google, Anthropic and OpenAI) are profitable and actually have high unit margins of 50-60%."

High Unit Margins and growth means, these labs can be profitable anytime they choose to

[baggachipz]

An 18 hour old account, named suspiciously like an ai model company, trying to discredit a prominent AI skeptic.

[dist-epoch]

Here I am, 2.5 year account discrediting him - the confirmation bias of Zitron is so thick, you need diamond tipped cutters to cut through it.

[disgruntledphd2]

Correct. And yet, he's provided some of the most level headed takes on the current LLM boom, to the point where FT Alphaville link to his analysis of the economics.

[ai-x]

The jury is still out there if his analysis are level-headed or not. He says things that *some* people want to hear, but that's not level-headed

E.g

What is the unit cost of serving a Token? It is the cost of electricity + amortized cost of GPU (GPUs would have been Capex, but because of their fast depreciation rate, you can claim they should be Opex). Given this cost structure, every SOTA labs (Google, Anthropic and OpenAI) are profitable and actually have high-margins 50-60%.

With this margin and growth, the frontier labs can be profitable anytime they want to. But they are sacrificing profitability for growth (as they should be)

Where is Ed's analysis about this? Either he is disingenuous or clueless. Remember people who voluntarily subscribe to Ed, are coming from wanting to hear what they believe.

If he is level-headed, show me an Ed article that is positive about AI

[dist-epoch]

FT Alphaville dissed bitcoin and Tesla for 10 years. Not the greatest track record.