Derek Thompson Flags Hyperscaler AI Spending Risks
Derek Thompson notes rising AI revenues but flags unreported hyperscaler spending and slim closed-model profits.
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.
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) ...…
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2 postsThere'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) ...…
completely agree. more revenue does not mean home free.
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) ...…
