> Oh! What’s his reputation?

The people who are completely sold on the belief that AI providers are running at a profit believe him to be utterly, totally and completely wrong in every one of his predictions.

The people who are completely sold on the belief that AI providers are running at a loss they can never recover from believe him to be utterly, totally and completely correct in every one of his predictions.

The reality is that it's not his predictions that matter, but his data, which is almost always correct as of time of writing. If you ignore his opinions, the data presented on liabilities, spend, revenue, loans, commitments, etc across Coreweave, Stargate, Oracle and all of the usual AI companies is, as far as I can tell, correct.

IOW, when it comes to his opinions, it's all about your priors. His data is good, though.

▲

disgruntledphd2 5 hours ago | parent | next [-]

> The reality is that it's not his predictions that matter, but his data, which is almost always correct as of time of writing. If you ignore his opinions, the data presented on liabilities, spend, revenue, loans, commitments, etc across Coreweave, Stargate, Oracle and all of the usual AI companies is, as far as I can tell, correct.

Yeah, I think that he does well with sources and data. I also think that his editorialising can be off-putting for lots of people. I kinda enjoy it, but accept that I have niche tastes.

▲

simianwords 4 hours ago | parent [-]

> Yeah, I think that he does well with sources and data

He's not even good at that, here's him not understanding what ARR means and fumbling a simple calculation and refusing to fix it.

https://x.com/binarybits/status/2031392856401666362

Not only not understanding ARR, he simply doesn't do data analysis properly - he misses some few months and days in his calculation to prop up his point. This is a mistake chatgpt would have caught.

https://x.com/binarybits/status/2034377838883700953

▲

lelanthran 4 hours ago | parent | next [-]

> He's not even good at that, here's him not understanding what ARR means and fumbling a simple calculation and refusing to fix it.

Do you have a link to his blog where he gets the ARR wrong?

True, I haven't much of his posts, but the one or two I recall reading with ARR in it didn't seem to have fumbled the calculations.

▲

disgruntledphd2 4 hours ago | parent | prev [-]

> understanding what ARR means

Can you share me the official meaning of ARR? Preferably on a GAAP basis. Should be no problem, right?

	▲	simianwords 4 hours ago \| parent [-]
		ARR has no official GAAP definition, but is generally understood as the annualized value of a company's current recurring revenue base. This is something Ed clearly doesn't understand https://x.com/edzitron/status/2031124650474852382 And you haven't addressed the fact that he doesn't do simple data calculations - see his blog https://www.wheresyoured.at/the-beginning-of-history

▲

TonyStr 4 hours ago | parent | prev | next [-]

I don't think anyone believes the major AI providers are running at a profit? They are openly investing heavily into R&D and building out infrastructure, and according to these numbers way more than revenue. It wouldn't make sense for any of these companies to run at a profit right now as they're still aggressively expanding. The question is whether they will break even in the future, and capture a large enough market segment to sustain the business, allowing revenue to outgrow costs. If these numbers are real, revenue is already higher than COGS which is a really good signal for them.

I think the question is more about whether people believe this is a sound business in the long term, which imo isn't possible to tell based on these numbers yet.

▲

JeremyNT an hour ago | parent | prev [-]

> The people who are completely sold on the belief that AI providers are running at a loss they can never recover from believe him to be utterly, totally and completely correct in every one of his predictions.

It's funny, because you can both believe that these entities are bleeding money on every token and also believe that "financial engineering" will bail them out when they IPO despite this fact.

The fundamentals of running a business that sells products or services for more than the cost to produce them seem increasingly decoupled from the financial success of the company and its owners.