New AI Models Accelerate Capex Spending For Mag7 Companies
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to be more blunt, my bear scenario specifically was invalidated by recent model releases. new usecases (and apparently ARR) are being unlocked faster than crowding out is occurring. newest gen models seem to be accelerating spend.
@labubu_trader not based on any technicals, but my personal view is between ant revenue increase+fable, 5.6+codex sub increases, GLM 5.2 and not even counting K3, capex seems p justifiable for mag7
i do not claim to know exactly at which model innovations stop occurring, bc i am not privy to what the frontier labs are doing at this exact moment. however, I would expect this uptrend to continue, since we're in a new phase where models themselves are running ablations.
ig i was slightly wrong with my attribution: now that hyperscalers are consolidating into serving a few models ($SPCX, $META, $AMZN and $GOOGL all serve anthropic), what's most upstream is whether most recent model releases are driving usage growth also, gonna long $ORCL soon.
what happened this quarter: up and to the right
Did... Codex just overtake Claude Code? 24.5 hours ago Tibo announced 6M active users. this means Codex usage jumped 1M in ~ONE DAY. the last user number we heard from Claude Code was 2M in Feb: https://www.latent.space/p/ainews-codex-usage-up-10x-in-6-months more analysis within, but this is very big if true. https://twitter.com/thsottiaux/status/2076735790567338203