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The Subprime Compute Crisis
- HenryOsborn 7mo agoI wrote this after running a forensic analysis on the unit economics of current frontier models. The underlying math looks structurally identical to the collateralized debt loops of 2008. The hyperscaler revenue is effectively the CapEx of the startups they are funding. Happy to debate the mechanics of the round-tripping here.
- verdverm 7mo agoI'd suggest starting with citations, you have zero right now. Then move on to visuals after that.
- chrisjj 7mo ago> To justify their current infrastructure commitments, these labs would essentially need to capture nearly 100% of all global corporate IT spending just to break even on the depreciation of their GPUs. Priceless. ;)