HenryOsborn

3 ms·

1. 1.▲
   by HenryOsborn 7mo ago

   I 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
2. 2.▲
   The Subprime Compute Crisis(theosbornletter.substack.com)

   2 points by HenryOsborn 7mo ago|3 comments
3. 3.▲
   by HenryOsborn 7mo ago

   Token velocity is great, but the industry is hyper-fixated on speed while completely ignoring the blast radius. If we push to 17k tokens/sec for autonomous agents, we are just accelerating how fast an agent can hit an infinite loop and
4. 4.▲
   by HenryOsborn 7mo ago

   This was the inevitable endpoint of the current AI unit economics. When inference costs are this high and open-source models are compressing SaaS margins to zero, companies can't survive on standard subscription models. They have to su