Whoa. I've said before, but I think Dario severely underestimated the coming demand and ensuing need for compute, and would need to pay through the nose when the crunch hit. I suspect that Google deal also worked out better for Google. This data point supports that view.
While Altman got laughed out of the room as a "podcasting bro" asking for trillions in investment in compute, Dario was going on about how difficult it is to forecast capacity on the Dwarkesh podcast. Seems like a major unforced error on Dario's part. What I cannot understand is how they both came to such different perspectives; my best guess is that ChatGPT has so much more traffic that OpenAI could gauge the trends much better.
This won't hurt Anthropic long-term of course, but this won't look great on that balance sheet, that too right around the time they plan to IPO.
They have different personalities. I can only imagine Altman wants to stay on top of the chaos, and believes he will come out ahead whatever happens, while Dario is trying to stay realistic and mitigate worst-case scenarios.
Being drowned in demand and scrambling for compute because you’re more successful than anticipated is a better problem than the other way around.
Oh, for sure it could be much worse -- they could have been in xAI's place! ;-)
But while this is a "good problem to have" it would have been an even better problem to avoid in the first place, because it seemed avoidable.
Now, I'm totally armchair billionaire-CEO-ing here, but anybody with any compute has been so obviously capacity constrained for so many quarters all the while scrambling like mad and spending obscene amounts of money to acquire even more compute. With lead times of 2 - 3 years, something Dario explicitly called out on Dwarkesh, it seemed prudent to acquire first, ask questions later. Worst case, they could have rented any extra capacity out, like Elon is doing!
Outsiders are reasonably questioning this mania but Dario, as one of the biggest believers in AI and even AGI, showing hesitancy seems uncharacteristic. I wonder if this is one of those rare cases where it would have been better to drink his own Kool Aid!
Anthropic got somewhat lucky that Elon wanted to stick it to Altman, but boy, even then he drove a hard bargain.
Lmao wtf. Based on this post I can clearly see you've never properly understood what balance sheets are and how they are created.
Stop posting stuff you have ZERO clue about.
That's fair, I'm not a finance person, just meant to say that this is costing them way more than they would have liked at a critical stage in their corporate evolution. I'm curious though what your take is.