alt Hacker NewsThis is an awful article. I don't know how it reached #1 on HN.
Bottom line is that H100 prices are near 3 year highs, A100s are still profitable to run, B200 prices are increasing, no one has enough compute. Google, OpenAI, Anthropic, Meta, AWS, Azure are all compute constrained. Every single one of them said so publicly. Neo clouds are telling customers they're all sold out now and you even have to book compute in advance if you're an AI company.
OpenAI is struggling to monetize. They turned to showing ads in ChatGPT, something Sam Altman once called a “last resort”, while Anthropic is crushing them with the more profitable corporate customers and software engineers.
I wouldn’t be surprised at all if in the next couple of quarters we see OpenAI looking for an exit. It will be interesting because the sizes are now so big that we will probably know all the details. The most likely buyer is Microsoft, they already own a lot of it, and because of that, they are the most interested in showing a win.
Independent reports state that Claude metered models are priced 5x more expensive than their subscribers pay
Replies
> I think AI agents could completely replace Microsoft Office
How? What do you think lawyers/government will use to write briefs?
> but Anthropic is kicking butt in AI
that's not what the article said:
> They turned to showing ads in ChatGPT, something Sam Altman once called a “last resort”, while Anthropic is crushing them
> I think OpenAI is going to be bigger than Microsoft in market cap within the next 3 years.
I am yet to see how a one-legged business model with just a single product (that is not crude oil), without a plan and money is going to become sustainable. Oh yeah, maybe they'll finally make money on those autonomous lethal weapons. That sounds the easiest.
> Bottom line is that H100 prices are near 3 year highs, A100s are still profitable to run, B200 prices are increasing, no one has enough compute.
Then why aren't the hardware manufacturers of components needed by AI companies making plans yesterday to bring new fabs online to meet demand? That isn't a gotcha question, I genuinely want to know. The money involved isn't that much compared to the money changing hands between Nvidia Microsoft, OpenAI, etc., and it's not like once in-progress data center construction is complete they won't need to buy more RAM and GPUs, especially with any new advances in technology that might happen.
Inevitably someone will reply that hardware manufacturers don't want to be stuck losing money on a facility because the bubble popped and demand disappeared, but if Anthropic and OpenAI are going to "run laps around current big tech", it should be a no-brainer to increase production capacity.