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
Why should those two things go together?
Not necessarily. That METR study was interesting in that participants reported that they were more productive, but the hard data disagreed. This is incredibly common when looking at humans, we're generally bad at knowing what hurts or helps us in this sphere.
And personally, I think LLMs are super useful, but I'm pretty sceptical about valuations and returns in this space over the short to medium term.