70% of AI revenue comes from OpenAI and Anthropic

70% of AI revenue comes from OpenAI and Anthropic(youtube.com)

32 points by johnbarron 3 hours ago | 7 comments

jrflo 9 minutes ago |

I don't know much about this guy other than every time I see him on here he has an axe to grind about AI

vikramkr 1 hour ago |

Ai revenue or datacenter/compute revenue? There's a lot of circular financing right now and there's a pretty obvious bubble for sure but I haven't been able to figure out what exactly this guy's argument is after seeing it a few times recently. Like yeah most ai datacenter spend is those two companies - that's pretty standard monopoly (or monopsony for the cloud providers) dynamics. If you're saying some major percentage of all ai related spending is openai and anthropic spending money on compute - well that's not exactly right because Google etc are also spending money on building datacenters (that's not ai spend in this definition? WTF is ai revenue exactly?) - and that's just pretty much indicating it's a frothy market with two unprofitable companies at the center with huge cogs? We knew that already.

Feels like they want to make a clean headline grabbing argument about how "70% of all the spending is actually just these two companies" and are ending up with a really muddled headline that's just like yeah that's how monopoloies and duopolies work. When there's a lot more insidious circular complicated shenanigans going on that gets collapsed by this framing.

lokar 12 minutes ago | |

The general concern (from him and others) is that the cloud providers are making extremely large capex commitments (borrowing, going cashflow negative) to satisfy demand from a small number of customers who may not be able to pay them.

re-thc 2 minutes ago | | |

> to satisfy demand from a small number of customers who may not be able to pay them

Because a lot of isn't real demand, e.g. given away for free or very very cheap.

doctorpangloss 10 minutes ago | |

One interpretation is that so called profitability is one 15 minute phone call between OpenAI and Anthropic to increase prices. If you think that antitrust is the reason that this won't happen, you've stated a speculation. Not a certainty.

bvghnnxeyjbx 7 minutes ago | | |

there isn't enough demand to raise prices. OpenAI announced price CUTS recently and they are hilariously unprofitable already. Why would they be cutting prices if they have the ability to raise them? outside of this website and the ownership class everyone hates AI

johnbarron 1 hour ago | |

>> When there's a lot more insidious circular complicated shenanigans going on that gets collapsed by this framing.

All that is discussed in the video, plus those distinctions. And most important, that AI revenue would not exist...if OpenAI and Anthropic would not be funded, by the same Amazon, Google and Microsoft they are buying it from!

We now have several voices saying the same:

"Aswath Damodaran: Big Tech Has No Idea How AI Pays Off" - https://news.ycombinator.com/item?id=49229981

"Why Wall Street Is Ignoring Big Tech's Debt" - https://news.ycombinator.com/item?id=49230630

scotty79 54 minutes ago |

Wasn't it always seen as a "winner takes all" business?

amelius 8 minutes ago | |

If there was one winner then that would make a lot of people very angry.

sethops1 24 minutes ago | |

There is no "all", that's the point. There is no pot of gold at the end of the AI rainbow.

TZubiri 8 minutes ago | | |

There's a lot of money changing hands, at least that's a spoil isn't it? And if the music stops, someone is going to end up holding it.