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    Derek Thompson Flags Hyperscaler AI Spending Risks

    Derek Thompson notes rising AI revenues but flags unreported hyperscaler spending and slim closed-model profits.

    Gary MarcusGM
    Dave McClureDM
    3 Sources, ,

    TLDR

    Derek Thompson posted that revenue from chips, cloud services, and AI labs is rising quickly. He stated that hyperscalers face much higher spending than reported and that closed weight models may deliver lower profits than expected. The post concludes these conditions point to a forthcoming challenge for the companies. The message was retweeted by investor Dave McClure and references two charts not shown in the visible text.

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    3 Sources, first seen 51d ago

    Combined views

    9K

    3 Sources, first seen 51d ago

    47 likes
    51d ago
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    2 comments
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    13 reposts
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    Sources

    1. DT
      Derek Thompson@DKThomp7 weeks ago

      There's no denying that chip, cloud, and AI lab revenue is all rising quickly right now. But if: (a) the hyperscalers are on the hook for much more spending than has been reported (chart 1) ; and (b) closed weight models might be less profitable than anticipated (chart 2) ...…

      • likes: 193
      • replies: 16
      • bookmarks: 101
      • reposts: 28
    2. GM
      Gary Marcus@GaryMarcus7 weeks ago

      completely agree. more revenue does not mean home free.

      • likes: 47
      • replies: 2
      • bookmarks: 13
      • reposts: 3

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    1. DT
      Derek Thompson@DKThomp7 weeks ago

      There's no denying that chip, cloud, and AI lab revenue is all rising quickly right now. But if: (a) the hyperscalers are on the hook for much more spending than has been reported (chart 1) ; and (b) closed weight models might be less profitable than anticipated (chart 2) ...…

      • likes: 193
      • replies: 16
      • bookmarks: 101
      • reposts: 28
    2. GM
      Gary Marcus@GaryMarcus7 weeks ago

      completely agree. more revenue does not mean home free.

      • likes: 47
      • replies: 2
      • bookmarks: 13
      • reposts: 3