Megaspeed's finances might be more interesting than Huang's affair.
From my friend Mr. X:
As Anthropic apparently starts their road show, which I would call “We Work Part Deux.” Remember, as I said before, We Work cut their valuation 3x, still couldn’t get it done, and then eventually ended up bankrupt. And in my view, We Work and Adam Neumann had better governance and were a better deal, for a variety of reasons. And that was before everything started coming undone and prior to policy heading in the wrong direction and prior to the head of the central bank of NVDA, who is also financing them, was caught canoodling with a Chinese spy.
This is why it does not work. This is not .COM or railroads. The $ are being spend on an incredibly dis-economic technology that will decay as opposed to sticking around. This is rapidly depreciating immature broken software and compute that is the equivalent of UNIX, SPARC, and VAX or a Mainframe.
Then, the more they are spending, the less they are getting. It is sort of like the impact of every incremental dollar of debt on GDP, very diminishing marginal returns. There is no scaling. If the underlying technology does the opposite of scaling, the business cannot scale.
Said simply, cost per unit is going way up (Anthropic’s S-1 tells you this too), revenue per unit is plummeting. See this tweet and subtweet: [x.com]
More on Jensen the China lobbyist: garymarcus.substack.com/p/jensen-is-co… [garymarcus.substack.com]
ICYMI re my last: culperresearch.com/wp-content/upl…
x.com/ramez/status/2…
$NVDA
@JG_Nuke @DougKass @edzitron @MacrostrategyP @GaryMarcusView quoted post on X
