> any company ingesting that much cash needs to justify its capacity to survive.

What, why? There are tons of low-margin capex-intensive business out there.

I think AI will end up like being like hosting. All the models will converge to being pretty-decent and the companies will have to compete on efficiency since they are selling a generic commodity.

You can already see Anthropic fears this scenario since they try so hard to make people use their first-party tools rather than plugging Claude in as a generic part of a third-party stack.

LLM hosting is the next VPS.