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502 points alazsengul | 2 comments | | HN request time: 0s | source
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pm90 ◴[] No.44564397[source]
I think the amount of turmoil around these deals is giving more weight to the possibility that we’re in a massive bubble thats quite divorced from any kind of fundamentals. Sooner or later the bubbles gonna burst.
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nikcub ◴[] No.44564871[source]
> divorced from any kind of fundamentals

Anthropic ARR went $1B -> $4B in the first half of this year. They're getting my $200 a month and it's easily the best money I spend. There's definitely something there.

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benjaminwootton ◴[] No.44564952[source]
I’ve always dwelled over $5 a month subscriptions for iPhone apps due to subscription fatigue. I find myself signing up for $200 AI subscriptions without a moments hesitation.
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smith7018 ◴[] No.44564959[source]
I hope both of you know that you're in the extreme minority, right?
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1. wrsh07 ◴[] No.44565258[source]
Yes, but that doesn't mean they aren't finding real value

The challenge with the bubble/not bubble framing is the question of long term value.

If the labs stopped spending money today, they would recoup their costs. Quickly.

There are possible risks (could prices go to zero because of a loss leader?), but I think anthropic and OpenAI are both sufficiently differentiated that they would be profitable/extremely successful companies by all accounts if they stopped spending today.

So the question is: at what point does any of this stop being true?

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2. Graphon1 ◴[] No.44566154[source]
> I think anthropic and OpenAI are both sufficiently differentiated that they would be profitable/extremely successful companies by all accounts if they stopped spending today.

Maybe. But that would probably be temporary. The market is sufficiently dynamic that any advantages they have right now, probably isn't stable defensible longer term. Hence the need to keep spending. But what do I know? I'm not a VC.