▲ 345 ▼ Almost Half of US Data Centers That Were Supposed to Open This Year Slated to Be Canceled or Delayed (futurism.com) submitted 6 months ago by cm0002@lemmings.world to c/goodnewseveryone@piefed.social 27 comments fedilink hide all child comments
[+] Feyd@programming.dev 58 points 6 months ago* (last edited 1 week ago) (17 children) [deleted] permalink fedilink source hideshow 17 child comments replies: [+] Sl00k@programming.dev -6 points 6 months ago (16 children) I'm curious, with Claudes adoption across regular users and Enterprises and their revenue absolutely skyrocketing, what leads you to this conclusion? permalink fedilink source parent hideshow 16 child comments replies: [+] Feyd@programming.dev 25 points 6 months ago* (last edited 1 week ago) (8 children) [deleted] permalink fedilink source parent hideshow 8 child comments replies: [+] Sl00k@programming.dev -21 points 6 months ago (7 children) I understand what you're saying but Opus has already changed programming forever. It is here, companies are stuck on it, people are stuck on it and that's if everything stopped today. Nobody is going back to coding by hand. Does path to probability make sense when you have as sticky as a product as they have? Worst case scenario open source catches up to you and we move back to a more centralized computing model. permalink fedilink source parent hideshow 7 child comments replies: [–] Zanshi@lemmy.world 13 points 6 months ago (3 children) We've had this discussion at work, but more in a "what if they keep hiking up the price" rather than Anthropic going down. The conclusion we reached was, we will probably move to local models, possibly open source, due to how much they are improving, and will most likely improve by the time this happens permalink fedilink source parent hideshow 3 child comments replies: [–] Tja@programming.dev 6 points 6 months ago Same. Anthropic is great, probably the best... this week. Even if the open source models never catch up, having something 90% as good for a fraction of the cost (capex + electrical bills) will definitely make it attractive. permalink fedilink source parent [–] Auli@lemmy.ca 1 point 3 months ago And what happens when the big AI companies boblonfer release their models as open source? permalink fedilink source parent [–] Sl00k@programming.dev -3 points 6 months ago Yeah I agree this is probably the long-term move. But I give it another year or two till we get an open source model that's comparable to even sonnet 4 which imo is where it started getting really solid. permalink fedilink source parent [+] Feyd@programming.dev 8 points 6 months ago* (last edited 1 week ago) (1 child) [deleted] permalink fedilink source parent hideshow 1 child comment replies: [+] Sl00k@programming.dev -6 points 6 months ago I didn't really understand this take, if you work in the start up industry, we've been shipping like crazy. We're producing a metric shit ton especially compared to enterprises. It's drastically different right now in forward orgs. permalink fedilink source parent [–] Auli@lemmy.ca 1 point 3 months ago Sure sure till they have to pay 10x or more then they already do. permalink fedilink source parent [–] booly@sh.itjust.works 9 points 6 months ago (6 children) Ed Zitron has a piece out talking about how even if Anthropic and OpenAI are bringing in revenue, most of it is coming from startups in such a way that their revenue will evaporate if the underlying startups crash, especially because the underlying cost of operating remains high (and where improvements in the underlying tech go towards improving performance rather than making operations cheaper). To me, it's a pretty persuasive argument that failures at any one part of the web of businesses and funds involved (even if completely unrelated to the AI industry) will cause stress on all of them, because they're so interrelated in a web of relationships. permalink fedilink source parent hideshow 6 child comments replies: [+] Sl00k@programming.dev -10 points 6 months ago (5 children) Ed Zitron publishes a lot of pretty biased reporting. Anthropic has been signing enterprise deals left and right this year, why would you willingly put yourself behind? Obviously startups will be the first to play they can't give up the advantage at any cost. Enterprises move slower but they won't take longer than this year. permalink fedilink source parent hideshow 5 child comments replies: [–] booly@sh.itjust.works 9 points 6 months ago (4 children) Ed Zitron publishes a lot of pretty biased reporting. The core thesis is sound, though: Anthropic and OpenAI's revenue comes in from customers. The revenue does not translate into profits, because their capital expenditures investing in future capabilities is quite high, and because their operating expenses are also quite high, to where their revenue doesn't even cover their ongoing compute cost. The actual money Anthropic and OpenAI have to spend at a loss comes from their investors. The customers are largely vulnerable to shocks and are themselves reliant on investor cash rather than a profitable business model of their own, and are essentially subsidizing a lot of the demand for the core services that Anthropic and OpenAI provide. Taken together, the whole ecosystem is currently relying on a continued influx of cash from investment: investors taking equity in these companies, lenders/bondholders charging interest on borrowed money, otherwise profitable businesses like Google and Meta steering their other profits into investment into AI. And so if there's a shock to investment activity, such as if there's a war in Iran causing an energy crisis and a global recession in real economic activity, that might translate into a cash crunch, as the investors pull back right at the time that the customers start defaulting on their payments. And if you remove the middleman startup businesses that pay Anthropic and OpenAI more than they receive from their own customers, the underlying "real customer" demand at the actual unsubsidized prices charged by Anthropic and OpenAI will plummet. I'm not a tech guy, but I am a business/finance guy, and I'm not seeing where the analysis is wrong. The argument is always that there's a runway to profitability, and they just need to take off before they run out of runway. And we can argue about whether they will or they won't get to takeoff, but if the business is relying on more runway being built because they know for sure they don't currently have enough runway to take off, that's a shaky situation to be in. Even if everyone is clamoring to be their runway-building partner today. permalink fedilink source parent hideshow 4 child comments replies: [–] Sl00k@programming.dev -2 points 5 months ago (1 child) Following up here again, Anthropic is now profitable: https://www.wsj.com/tech/ai/mind-blowing-growth-is-about-to-propel-anthropic-into-its-first-profitable-quarter-7edbf2f4 permalink fedilink source parent hideshow 1 child comment replies: [–] booly@sh.itjust.works 7 points 4 months ago Projections to be fake profitable (while excluding stock based compensation as an expense), sure. Give me GAAP statements on an actual normal quarter (Q2 April-June, Q3 July-September), not predictions about a weird made up quarter ("June quarter" aka June-August) that hasn't even started yet, especially not one where they're renting 200MW of compute at a temporary discount for 2 months. Even the leak is careful to explain that they don't expect to be profitable the rest of 2026, probably because they'll actually have to pay for all the compute they're using. permalink fedilink source parent [–] Sl00k@programming.dev -5 points 6 months ago (1 child) I agree this will lead to a large pullback, but in a world where a shovel has been discovered I can't see anyone going back to digging by their bare hands again. And that doesn't change if all the investment into future capabilities stops today. I would think this would to lead to the demise of OpenAI whereas Anthropic will survive due to enterprise contracts. FYI on Ed Zitron the guy didn't even know what a programming function was a few weeks ago. This is freshmen level CS stuff. You should keep that in mind when reading his LLM takes. He's not an adequate reporter there imo. permalink fedilink source parent hideshow 1 child comment replies: [–] Sl00k@programming.dev -1 points 6 months ago* If it puts into perspective the growth and why I can't buy into this downfall, this released today by anthropic: Demand from Claude customers has accelerated in 2026. Our run-rate revenue has now surpassed $30 billion-up from approximately $9 billion at the end of 2025. When we announced our Series G fundraising in February, we shared that over 500 business customers were each spending over $1 million on an annualized basis. Today that number exceeds 1,000, doubling in less than two months. https://www.anthropic.com/news/google-broadcom-partnership-compute Things are changing very very fast. permalink fedilink source parent
[+] Sl00k@programming.dev -6 points 6 months ago (16 children) I'm curious, with Claudes adoption across regular users and Enterprises and their revenue absolutely skyrocketing, what leads you to this conclusion? permalink fedilink source parent hideshow 16 child comments replies: [+] Feyd@programming.dev 25 points 6 months ago* (last edited 1 week ago) (8 children) [deleted] permalink fedilink source parent hideshow 8 child comments replies: [+] Sl00k@programming.dev -21 points 6 months ago (7 children) I understand what you're saying but Opus has already changed programming forever. It is here, companies are stuck on it, people are stuck on it and that's if everything stopped today. Nobody is going back to coding by hand. Does path to probability make sense when you have as sticky as a product as they have? Worst case scenario open source catches up to you and we move back to a more centralized computing model. permalink fedilink source parent hideshow 7 child comments replies: [–] Zanshi@lemmy.world 13 points 6 months ago (3 children) We've had this discussion at work, but more in a "what if they keep hiking up the price" rather than Anthropic going down. The conclusion we reached was, we will probably move to local models, possibly open source, due to how much they are improving, and will most likely improve by the time this happens permalink fedilink source parent hideshow 3 child comments replies: [–] Tja@programming.dev 6 points 6 months ago Same. Anthropic is great, probably the best... this week. Even if the open source models never catch up, having something 90% as good for a fraction of the cost (capex + electrical bills) will definitely make it attractive. permalink fedilink source parent [–] Auli@lemmy.ca 1 point 3 months ago And what happens when the big AI companies boblonfer release their models as open source? permalink fedilink source parent [–] Sl00k@programming.dev -3 points 6 months ago Yeah I agree this is probably the long-term move. But I give it another year or two till we get an open source model that's comparable to even sonnet 4 which imo is where it started getting really solid. permalink fedilink source parent [+] Feyd@programming.dev 8 points 6 months ago* (last edited 1 week ago) (1 child) [deleted] permalink fedilink source parent hideshow 1 child comment replies: [+] Sl00k@programming.dev -6 points 6 months ago I didn't really understand this take, if you work in the start up industry, we've been shipping like crazy. We're producing a metric shit ton especially compared to enterprises. It's drastically different right now in forward orgs. permalink fedilink source parent [–] Auli@lemmy.ca 1 point 3 months ago Sure sure till they have to pay 10x or more then they already do. permalink fedilink source parent [–] booly@sh.itjust.works 9 points 6 months ago (6 children) Ed Zitron has a piece out talking about how even if Anthropic and OpenAI are bringing in revenue, most of it is coming from startups in such a way that their revenue will evaporate if the underlying startups crash, especially because the underlying cost of operating remains high (and where improvements in the underlying tech go towards improving performance rather than making operations cheaper). To me, it's a pretty persuasive argument that failures at any one part of the web of businesses and funds involved (even if completely unrelated to the AI industry) will cause stress on all of them, because they're so interrelated in a web of relationships. permalink fedilink source parent hideshow 6 child comments replies: [+] Sl00k@programming.dev -10 points 6 months ago (5 children) Ed Zitron publishes a lot of pretty biased reporting. Anthropic has been signing enterprise deals left and right this year, why would you willingly put yourself behind? Obviously startups will be the first to play they can't give up the advantage at any cost. Enterprises move slower but they won't take longer than this year. permalink fedilink source parent hideshow 5 child comments replies: [–] booly@sh.itjust.works 9 points 6 months ago (4 children) Ed Zitron publishes a lot of pretty biased reporting. The core thesis is sound, though: Anthropic and OpenAI's revenue comes in from customers. The revenue does not translate into profits, because their capital expenditures investing in future capabilities is quite high, and because their operating expenses are also quite high, to where their revenue doesn't even cover their ongoing compute cost. The actual money Anthropic and OpenAI have to spend at a loss comes from their investors. The customers are largely vulnerable to shocks and are themselves reliant on investor cash rather than a profitable business model of their own, and are essentially subsidizing a lot of the demand for the core services that Anthropic and OpenAI provide. Taken together, the whole ecosystem is currently relying on a continued influx of cash from investment: investors taking equity in these companies, lenders/bondholders charging interest on borrowed money, otherwise profitable businesses like Google and Meta steering their other profits into investment into AI. And so if there's a shock to investment activity, such as if there's a war in Iran causing an energy crisis and a global recession in real economic activity, that might translate into a cash crunch, as the investors pull back right at the time that the customers start defaulting on their payments. And if you remove the middleman startup businesses that pay Anthropic and OpenAI more than they receive from their own customers, the underlying "real customer" demand at the actual unsubsidized prices charged by Anthropic and OpenAI will plummet. I'm not a tech guy, but I am a business/finance guy, and I'm not seeing where the analysis is wrong. The argument is always that there's a runway to profitability, and they just need to take off before they run out of runway. And we can argue about whether they will or they won't get to takeoff, but if the business is relying on more runway being built because they know for sure they don't currently have enough runway to take off, that's a shaky situation to be in. Even if everyone is clamoring to be their runway-building partner today. permalink fedilink source parent hideshow 4 child comments replies: [–] Sl00k@programming.dev -2 points 5 months ago (1 child) Following up here again, Anthropic is now profitable: https://www.wsj.com/tech/ai/mind-blowing-growth-is-about-to-propel-anthropic-into-its-first-profitable-quarter-7edbf2f4 permalink fedilink source parent hideshow 1 child comment replies: [–] booly@sh.itjust.works 7 points 4 months ago Projections to be fake profitable (while excluding stock based compensation as an expense), sure. Give me GAAP statements on an actual normal quarter (Q2 April-June, Q3 July-September), not predictions about a weird made up quarter ("June quarter" aka June-August) that hasn't even started yet, especially not one where they're renting 200MW of compute at a temporary discount for 2 months. Even the leak is careful to explain that they don't expect to be profitable the rest of 2026, probably because they'll actually have to pay for all the compute they're using. permalink fedilink source parent [–] Sl00k@programming.dev -5 points 6 months ago (1 child) I agree this will lead to a large pullback, but in a world where a shovel has been discovered I can't see anyone going back to digging by their bare hands again. And that doesn't change if all the investment into future capabilities stops today. I would think this would to lead to the demise of OpenAI whereas Anthropic will survive due to enterprise contracts. FYI on Ed Zitron the guy didn't even know what a programming function was a few weeks ago. This is freshmen level CS stuff. You should keep that in mind when reading his LLM takes. He's not an adequate reporter there imo. permalink fedilink source parent hideshow 1 child comment replies: [–] Sl00k@programming.dev -1 points 6 months ago* If it puts into perspective the growth and why I can't buy into this downfall, this released today by anthropic: Demand from Claude customers has accelerated in 2026. Our run-rate revenue has now surpassed $30 billion-up from approximately $9 billion at the end of 2025. When we announced our Series G fundraising in February, we shared that over 500 business customers were each spending over $1 million on an annualized basis. Today that number exceeds 1,000, doubling in less than two months. https://www.anthropic.com/news/google-broadcom-partnership-compute Things are changing very very fast. permalink fedilink source parent
[+] Feyd@programming.dev 25 points 6 months ago* (last edited 1 week ago) (8 children) [deleted] permalink fedilink source parent hideshow 8 child comments replies: [+] Sl00k@programming.dev -21 points 6 months ago (7 children) I understand what you're saying but Opus has already changed programming forever. It is here, companies are stuck on it, people are stuck on it and that's if everything stopped today. Nobody is going back to coding by hand. Does path to probability make sense when you have as sticky as a product as they have? Worst case scenario open source catches up to you and we move back to a more centralized computing model. permalink fedilink source parent hideshow 7 child comments replies: [–] Zanshi@lemmy.world 13 points 6 months ago (3 children) We've had this discussion at work, but more in a "what if they keep hiking up the price" rather than Anthropic going down. The conclusion we reached was, we will probably move to local models, possibly open source, due to how much they are improving, and will most likely improve by the time this happens permalink fedilink source parent hideshow 3 child comments replies: [–] Tja@programming.dev 6 points 6 months ago Same. Anthropic is great, probably the best... this week. Even if the open source models never catch up, having something 90% as good for a fraction of the cost (capex + electrical bills) will definitely make it attractive. permalink fedilink source parent [–] Auli@lemmy.ca 1 point 3 months ago And what happens when the big AI companies boblonfer release their models as open source? permalink fedilink source parent [–] Sl00k@programming.dev -3 points 6 months ago Yeah I agree this is probably the long-term move. But I give it another year or two till we get an open source model that's comparable to even sonnet 4 which imo is where it started getting really solid. permalink fedilink source parent [+] Feyd@programming.dev 8 points 6 months ago* (last edited 1 week ago) (1 child) [deleted] permalink fedilink source parent hideshow 1 child comment replies: [+] Sl00k@programming.dev -6 points 6 months ago I didn't really understand this take, if you work in the start up industry, we've been shipping like crazy. We're producing a metric shit ton especially compared to enterprises. It's drastically different right now in forward orgs. permalink fedilink source parent [–] Auli@lemmy.ca 1 point 3 months ago Sure sure till they have to pay 10x or more then they already do. permalink fedilink source parent
[+] Sl00k@programming.dev -21 points 6 months ago (7 children) I understand what you're saying but Opus has already changed programming forever. It is here, companies are stuck on it, people are stuck on it and that's if everything stopped today. Nobody is going back to coding by hand. Does path to probability make sense when you have as sticky as a product as they have? Worst case scenario open source catches up to you and we move back to a more centralized computing model. permalink fedilink source parent hideshow 7 child comments replies: [–] Zanshi@lemmy.world 13 points 6 months ago (3 children) We've had this discussion at work, but more in a "what if they keep hiking up the price" rather than Anthropic going down. The conclusion we reached was, we will probably move to local models, possibly open source, due to how much they are improving, and will most likely improve by the time this happens permalink fedilink source parent hideshow 3 child comments replies: [–] Tja@programming.dev 6 points 6 months ago Same. Anthropic is great, probably the best... this week. Even if the open source models never catch up, having something 90% as good for a fraction of the cost (capex + electrical bills) will definitely make it attractive. permalink fedilink source parent [–] Auli@lemmy.ca 1 point 3 months ago And what happens when the big AI companies boblonfer release their models as open source? permalink fedilink source parent [–] Sl00k@programming.dev -3 points 6 months ago Yeah I agree this is probably the long-term move. But I give it another year or two till we get an open source model that's comparable to even sonnet 4 which imo is where it started getting really solid. permalink fedilink source parent [+] Feyd@programming.dev 8 points 6 months ago* (last edited 1 week ago) (1 child) [deleted] permalink fedilink source parent hideshow 1 child comment replies: [+] Sl00k@programming.dev -6 points 6 months ago I didn't really understand this take, if you work in the start up industry, we've been shipping like crazy. We're producing a metric shit ton especially compared to enterprises. It's drastically different right now in forward orgs. permalink fedilink source parent [–] Auli@lemmy.ca 1 point 3 months ago Sure sure till they have to pay 10x or more then they already do. permalink fedilink source parent
[–] Zanshi@lemmy.world 13 points 6 months ago (3 children) We've had this discussion at work, but more in a "what if they keep hiking up the price" rather than Anthropic going down. The conclusion we reached was, we will probably move to local models, possibly open source, due to how much they are improving, and will most likely improve by the time this happens permalink fedilink source parent hideshow 3 child comments replies: [–] Tja@programming.dev 6 points 6 months ago Same. Anthropic is great, probably the best... this week. Even if the open source models never catch up, having something 90% as good for a fraction of the cost (capex + electrical bills) will definitely make it attractive. permalink fedilink source parent [–] Auli@lemmy.ca 1 point 3 months ago And what happens when the big AI companies boblonfer release their models as open source? permalink fedilink source parent [–] Sl00k@programming.dev -3 points 6 months ago Yeah I agree this is probably the long-term move. But I give it another year or two till we get an open source model that's comparable to even sonnet 4 which imo is where it started getting really solid. permalink fedilink source parent
[–] Tja@programming.dev 6 points 6 months ago Same. Anthropic is great, probably the best... this week. Even if the open source models never catch up, having something 90% as good for a fraction of the cost (capex + electrical bills) will definitely make it attractive. permalink fedilink source parent
[–] Auli@lemmy.ca 1 point 3 months ago And what happens when the big AI companies boblonfer release their models as open source? permalink fedilink source parent
[–] Sl00k@programming.dev -3 points 6 months ago Yeah I agree this is probably the long-term move. But I give it another year or two till we get an open source model that's comparable to even sonnet 4 which imo is where it started getting really solid. permalink fedilink source parent
[+] Feyd@programming.dev 8 points 6 months ago* (last edited 1 week ago) (1 child) [deleted] permalink fedilink source parent hideshow 1 child comment replies: [+] Sl00k@programming.dev -6 points 6 months ago I didn't really understand this take, if you work in the start up industry, we've been shipping like crazy. We're producing a metric shit ton especially compared to enterprises. It's drastically different right now in forward orgs. permalink fedilink source parent
[+] Sl00k@programming.dev -6 points 6 months ago I didn't really understand this take, if you work in the start up industry, we've been shipping like crazy. We're producing a metric shit ton especially compared to enterprises. It's drastically different right now in forward orgs. permalink fedilink source parent
[–] Auli@lemmy.ca 1 point 3 months ago Sure sure till they have to pay 10x or more then they already do. permalink fedilink source parent
[–] booly@sh.itjust.works 9 points 6 months ago (6 children) Ed Zitron has a piece out talking about how even if Anthropic and OpenAI are bringing in revenue, most of it is coming from startups in such a way that their revenue will evaporate if the underlying startups crash, especially because the underlying cost of operating remains high (and where improvements in the underlying tech go towards improving performance rather than making operations cheaper). To me, it's a pretty persuasive argument that failures at any one part of the web of businesses and funds involved (even if completely unrelated to the AI industry) will cause stress on all of them, because they're so interrelated in a web of relationships. permalink fedilink source parent hideshow 6 child comments replies: [+] Sl00k@programming.dev -10 points 6 months ago (5 children) Ed Zitron publishes a lot of pretty biased reporting. Anthropic has been signing enterprise deals left and right this year, why would you willingly put yourself behind? Obviously startups will be the first to play they can't give up the advantage at any cost. Enterprises move slower but they won't take longer than this year. permalink fedilink source parent hideshow 5 child comments replies: [–] booly@sh.itjust.works 9 points 6 months ago (4 children) Ed Zitron publishes a lot of pretty biased reporting. The core thesis is sound, though: Anthropic and OpenAI's revenue comes in from customers. The revenue does not translate into profits, because their capital expenditures investing in future capabilities is quite high, and because their operating expenses are also quite high, to where their revenue doesn't even cover their ongoing compute cost. The actual money Anthropic and OpenAI have to spend at a loss comes from their investors. The customers are largely vulnerable to shocks and are themselves reliant on investor cash rather than a profitable business model of their own, and are essentially subsidizing a lot of the demand for the core services that Anthropic and OpenAI provide. Taken together, the whole ecosystem is currently relying on a continued influx of cash from investment: investors taking equity in these companies, lenders/bondholders charging interest on borrowed money, otherwise profitable businesses like Google and Meta steering their other profits into investment into AI. And so if there's a shock to investment activity, such as if there's a war in Iran causing an energy crisis and a global recession in real economic activity, that might translate into a cash crunch, as the investors pull back right at the time that the customers start defaulting on their payments. And if you remove the middleman startup businesses that pay Anthropic and OpenAI more than they receive from their own customers, the underlying "real customer" demand at the actual unsubsidized prices charged by Anthropic and OpenAI will plummet. I'm not a tech guy, but I am a business/finance guy, and I'm not seeing where the analysis is wrong. The argument is always that there's a runway to profitability, and they just need to take off before they run out of runway. And we can argue about whether they will or they won't get to takeoff, but if the business is relying on more runway being built because they know for sure they don't currently have enough runway to take off, that's a shaky situation to be in. Even if everyone is clamoring to be their runway-building partner today. permalink fedilink source parent hideshow 4 child comments replies: [–] Sl00k@programming.dev -2 points 5 months ago (1 child) Following up here again, Anthropic is now profitable: https://www.wsj.com/tech/ai/mind-blowing-growth-is-about-to-propel-anthropic-into-its-first-profitable-quarter-7edbf2f4 permalink fedilink source parent hideshow 1 child comment replies: [–] booly@sh.itjust.works 7 points 4 months ago Projections to be fake profitable (while excluding stock based compensation as an expense), sure. Give me GAAP statements on an actual normal quarter (Q2 April-June, Q3 July-September), not predictions about a weird made up quarter ("June quarter" aka June-August) that hasn't even started yet, especially not one where they're renting 200MW of compute at a temporary discount for 2 months. Even the leak is careful to explain that they don't expect to be profitable the rest of 2026, probably because they'll actually have to pay for all the compute they're using. permalink fedilink source parent [–] Sl00k@programming.dev -5 points 6 months ago (1 child) I agree this will lead to a large pullback, but in a world where a shovel has been discovered I can't see anyone going back to digging by their bare hands again. And that doesn't change if all the investment into future capabilities stops today. I would think this would to lead to the demise of OpenAI whereas Anthropic will survive due to enterprise contracts. FYI on Ed Zitron the guy didn't even know what a programming function was a few weeks ago. This is freshmen level CS stuff. You should keep that in mind when reading his LLM takes. He's not an adequate reporter there imo. permalink fedilink source parent hideshow 1 child comment replies: [–] Sl00k@programming.dev -1 points 6 months ago* If it puts into perspective the growth and why I can't buy into this downfall, this released today by anthropic: Demand from Claude customers has accelerated in 2026. Our run-rate revenue has now surpassed $30 billion-up from approximately $9 billion at the end of 2025. When we announced our Series G fundraising in February, we shared that over 500 business customers were each spending over $1 million on an annualized basis. Today that number exceeds 1,000, doubling in less than two months. https://www.anthropic.com/news/google-broadcom-partnership-compute Things are changing very very fast. permalink fedilink source parent
[+] Sl00k@programming.dev -10 points 6 months ago (5 children) Ed Zitron publishes a lot of pretty biased reporting. Anthropic has been signing enterprise deals left and right this year, why would you willingly put yourself behind? Obviously startups will be the first to play they can't give up the advantage at any cost. Enterprises move slower but they won't take longer than this year. permalink fedilink source parent hideshow 5 child comments replies: [–] booly@sh.itjust.works 9 points 6 months ago (4 children) Ed Zitron publishes a lot of pretty biased reporting. The core thesis is sound, though: Anthropic and OpenAI's revenue comes in from customers. The revenue does not translate into profits, because their capital expenditures investing in future capabilities is quite high, and because their operating expenses are also quite high, to where their revenue doesn't even cover their ongoing compute cost. The actual money Anthropic and OpenAI have to spend at a loss comes from their investors. The customers are largely vulnerable to shocks and are themselves reliant on investor cash rather than a profitable business model of their own, and are essentially subsidizing a lot of the demand for the core services that Anthropic and OpenAI provide. Taken together, the whole ecosystem is currently relying on a continued influx of cash from investment: investors taking equity in these companies, lenders/bondholders charging interest on borrowed money, otherwise profitable businesses like Google and Meta steering their other profits into investment into AI. And so if there's a shock to investment activity, such as if there's a war in Iran causing an energy crisis and a global recession in real economic activity, that might translate into a cash crunch, as the investors pull back right at the time that the customers start defaulting on their payments. And if you remove the middleman startup businesses that pay Anthropic and OpenAI more than they receive from their own customers, the underlying "real customer" demand at the actual unsubsidized prices charged by Anthropic and OpenAI will plummet. I'm not a tech guy, but I am a business/finance guy, and I'm not seeing where the analysis is wrong. The argument is always that there's a runway to profitability, and they just need to take off before they run out of runway. And we can argue about whether they will or they won't get to takeoff, but if the business is relying on more runway being built because they know for sure they don't currently have enough runway to take off, that's a shaky situation to be in. Even if everyone is clamoring to be their runway-building partner today. permalink fedilink source parent hideshow 4 child comments replies: [–] Sl00k@programming.dev -2 points 5 months ago (1 child) Following up here again, Anthropic is now profitable: https://www.wsj.com/tech/ai/mind-blowing-growth-is-about-to-propel-anthropic-into-its-first-profitable-quarter-7edbf2f4 permalink fedilink source parent hideshow 1 child comment replies: [–] booly@sh.itjust.works 7 points 4 months ago Projections to be fake profitable (while excluding stock based compensation as an expense), sure. Give me GAAP statements on an actual normal quarter (Q2 April-June, Q3 July-September), not predictions about a weird made up quarter ("June quarter" aka June-August) that hasn't even started yet, especially not one where they're renting 200MW of compute at a temporary discount for 2 months. Even the leak is careful to explain that they don't expect to be profitable the rest of 2026, probably because they'll actually have to pay for all the compute they're using. permalink fedilink source parent [–] Sl00k@programming.dev -5 points 6 months ago (1 child) I agree this will lead to a large pullback, but in a world where a shovel has been discovered I can't see anyone going back to digging by their bare hands again. And that doesn't change if all the investment into future capabilities stops today. I would think this would to lead to the demise of OpenAI whereas Anthropic will survive due to enterprise contracts. FYI on Ed Zitron the guy didn't even know what a programming function was a few weeks ago. This is freshmen level CS stuff. You should keep that in mind when reading his LLM takes. He's not an adequate reporter there imo. permalink fedilink source parent hideshow 1 child comment replies: [–] Sl00k@programming.dev -1 points 6 months ago* If it puts into perspective the growth and why I can't buy into this downfall, this released today by anthropic: Demand from Claude customers has accelerated in 2026. Our run-rate revenue has now surpassed $30 billion-up from approximately $9 billion at the end of 2025. When we announced our Series G fundraising in February, we shared that over 500 business customers were each spending over $1 million on an annualized basis. Today that number exceeds 1,000, doubling in less than two months. https://www.anthropic.com/news/google-broadcom-partnership-compute Things are changing very very fast. permalink fedilink source parent
[–] booly@sh.itjust.works 9 points 6 months ago (4 children) Ed Zitron publishes a lot of pretty biased reporting. The core thesis is sound, though: Anthropic and OpenAI's revenue comes in from customers. The revenue does not translate into profits, because their capital expenditures investing in future capabilities is quite high, and because their operating expenses are also quite high, to where their revenue doesn't even cover their ongoing compute cost. The actual money Anthropic and OpenAI have to spend at a loss comes from their investors. The customers are largely vulnerable to shocks and are themselves reliant on investor cash rather than a profitable business model of their own, and are essentially subsidizing a lot of the demand for the core services that Anthropic and OpenAI provide. Taken together, the whole ecosystem is currently relying on a continued influx of cash from investment: investors taking equity in these companies, lenders/bondholders charging interest on borrowed money, otherwise profitable businesses like Google and Meta steering their other profits into investment into AI. And so if there's a shock to investment activity, such as if there's a war in Iran causing an energy crisis and a global recession in real economic activity, that might translate into a cash crunch, as the investors pull back right at the time that the customers start defaulting on their payments. And if you remove the middleman startup businesses that pay Anthropic and OpenAI more than they receive from their own customers, the underlying "real customer" demand at the actual unsubsidized prices charged by Anthropic and OpenAI will plummet. I'm not a tech guy, but I am a business/finance guy, and I'm not seeing where the analysis is wrong. The argument is always that there's a runway to profitability, and they just need to take off before they run out of runway. And we can argue about whether they will or they won't get to takeoff, but if the business is relying on more runway being built because they know for sure they don't currently have enough runway to take off, that's a shaky situation to be in. Even if everyone is clamoring to be their runway-building partner today. permalink fedilink source parent hideshow 4 child comments replies: [–] Sl00k@programming.dev -2 points 5 months ago (1 child) Following up here again, Anthropic is now profitable: https://www.wsj.com/tech/ai/mind-blowing-growth-is-about-to-propel-anthropic-into-its-first-profitable-quarter-7edbf2f4 permalink fedilink source parent hideshow 1 child comment replies: [–] booly@sh.itjust.works 7 points 4 months ago Projections to be fake profitable (while excluding stock based compensation as an expense), sure. Give me GAAP statements on an actual normal quarter (Q2 April-June, Q3 July-September), not predictions about a weird made up quarter ("June quarter" aka June-August) that hasn't even started yet, especially not one where they're renting 200MW of compute at a temporary discount for 2 months. Even the leak is careful to explain that they don't expect to be profitable the rest of 2026, probably because they'll actually have to pay for all the compute they're using. permalink fedilink source parent [–] Sl00k@programming.dev -5 points 6 months ago (1 child) I agree this will lead to a large pullback, but in a world where a shovel has been discovered I can't see anyone going back to digging by their bare hands again. And that doesn't change if all the investment into future capabilities stops today. I would think this would to lead to the demise of OpenAI whereas Anthropic will survive due to enterprise contracts. FYI on Ed Zitron the guy didn't even know what a programming function was a few weeks ago. This is freshmen level CS stuff. You should keep that in mind when reading his LLM takes. He's not an adequate reporter there imo. permalink fedilink source parent hideshow 1 child comment replies: [–] Sl00k@programming.dev -1 points 6 months ago* If it puts into perspective the growth and why I can't buy into this downfall, this released today by anthropic: Demand from Claude customers has accelerated in 2026. Our run-rate revenue has now surpassed $30 billion-up from approximately $9 billion at the end of 2025. When we announced our Series G fundraising in February, we shared that over 500 business customers were each spending over $1 million on an annualized basis. Today that number exceeds 1,000, doubling in less than two months. https://www.anthropic.com/news/google-broadcom-partnership-compute Things are changing very very fast. permalink fedilink source parent
[–] Sl00k@programming.dev -2 points 5 months ago (1 child) Following up here again, Anthropic is now profitable: https://www.wsj.com/tech/ai/mind-blowing-growth-is-about-to-propel-anthropic-into-its-first-profitable-quarter-7edbf2f4 permalink fedilink source parent hideshow 1 child comment replies: [–] booly@sh.itjust.works 7 points 4 months ago Projections to be fake profitable (while excluding stock based compensation as an expense), sure. Give me GAAP statements on an actual normal quarter (Q2 April-June, Q3 July-September), not predictions about a weird made up quarter ("June quarter" aka June-August) that hasn't even started yet, especially not one where they're renting 200MW of compute at a temporary discount for 2 months. Even the leak is careful to explain that they don't expect to be profitable the rest of 2026, probably because they'll actually have to pay for all the compute they're using. permalink fedilink source parent
[–] booly@sh.itjust.works 7 points 4 months ago Projections to be fake profitable (while excluding stock based compensation as an expense), sure. Give me GAAP statements on an actual normal quarter (Q2 April-June, Q3 July-September), not predictions about a weird made up quarter ("June quarter" aka June-August) that hasn't even started yet, especially not one where they're renting 200MW of compute at a temporary discount for 2 months. Even the leak is careful to explain that they don't expect to be profitable the rest of 2026, probably because they'll actually have to pay for all the compute they're using. permalink fedilink source parent
[–] Sl00k@programming.dev -5 points 6 months ago (1 child) I agree this will lead to a large pullback, but in a world where a shovel has been discovered I can't see anyone going back to digging by their bare hands again. And that doesn't change if all the investment into future capabilities stops today. I would think this would to lead to the demise of OpenAI whereas Anthropic will survive due to enterprise contracts. FYI on Ed Zitron the guy didn't even know what a programming function was a few weeks ago. This is freshmen level CS stuff. You should keep that in mind when reading his LLM takes. He's not an adequate reporter there imo. permalink fedilink source parent hideshow 1 child comment replies: [–] Sl00k@programming.dev -1 points 6 months ago* If it puts into perspective the growth and why I can't buy into this downfall, this released today by anthropic: Demand from Claude customers has accelerated in 2026. Our run-rate revenue has now surpassed $30 billion-up from approximately $9 billion at the end of 2025. When we announced our Series G fundraising in February, we shared that over 500 business customers were each spending over $1 million on an annualized basis. Today that number exceeds 1,000, doubling in less than two months. https://www.anthropic.com/news/google-broadcom-partnership-compute Things are changing very very fast. permalink fedilink source parent
[–] Sl00k@programming.dev -1 points 6 months ago* If it puts into perspective the growth and why I can't buy into this downfall, this released today by anthropic: Demand from Claude customers has accelerated in 2026. Our run-rate revenue has now surpassed $30 billion-up from approximately $9 billion at the end of 2025. When we announced our Series G fundraising in February, we shared that over 500 business customers were each spending over $1 million on an annualized basis. Today that number exceeds 1,000, doubling in less than two months. https://www.anthropic.com/news/google-broadcom-partnership-compute Things are changing very very fast. permalink fedilink source parent