Banks are handing out huge loans to the neocloud companies that are being collateralized with GPUs. These loans could easily go south if the bottom falls out of the GPU market. Hopefully it’s a very small amount of liquidity tied up in those loans.
Tech stocks make up a significant part of the stock market now. Where the tech stocks go, the market will follow. Everyday consumers invested in index funds will definitely see a hit to their portfolios if AI busts.
> Pets.com lost $42.4 million during the fourth quarter last year on $5.2 million in sales. Since the company's inception in February of last year, it has lost $61.8 million on $5.8 million in sales.
https://www.cnet.com/tech/tech-industry/pets-com-raises-82-5...
They had sales, they were just making a massive loss. Isn’t that pretty similar to AI companies, just on a way smaller scale?
We haven’t seen AI IPOs yet, but it’s not hard to imagine one of them going public before making profit IMO.
Yes, $5m in sales. That's effectively pre-revenue for a tech company.
We also know that AI hype is holding up most of the stock market this point, including the ticker symbols which you don't think of as being for "AI companies". Market optimism at large is coming from the idea that companies won't need employees soon, or that they can keep using AI to de-leverage and de-skill their workforce
2. What is the Claude Code profit for the same period?
3. What is the Claude Code profit per request served when excluding fixed expenses such as training the models?
