They're getting below the rate of return of treasuries. That's abysmal.
181 karma · joined October 6, 2014
They're getting below the rate of return of treasuries. That's abysmal.
The behavioral economics/Freakonomics thing was like "Hey, here's this thing that might if you squint real hard fall outside of efficient market theory" and then for a decade people took that to mean that that the base concepts were worthless, which was a severe overcorrection from people that didn't understand economics.
PRs for knowledge transfer? I don't need it, I'll just ask an LLM a question if I have one.
PRs for enforcing good design? I dunno, if it's a terrible design, we'll just change it since change is so much less work now.
At a minimum, this gives Bain more leverage when negotiating with these companies.
Because if everyone is doing the same, then it's just brutal competition. Margins will squeeze, and eventually very lean companies will become the norm. In time, this means that the pool of information workers will change tremendously.
Same. It's a nightmare from a Porter's Five Forces perspective.
There will be a ton of businesses competing in this space, and there will be something of a moat due to how capital intensive the business can be, but there will still basically be infinite competitors.
Great for consumers.
SpaceX is a good company with a ton of potential future revenue on their data center and Starlink businesses. Nothing about this company is fugazzi.
It'll just be power users. We're moving toward a world of significantly fewer analysts and more into "Super SMEs" that can actually learn tools like Claude and manage enormous complexity with them.
Just giving average users these tools will produce garbage. This example from Claude is so contrived and any business analyst can see how a process that requires uploading additional data will fail. You can't expect users that don't even know their own data to be able to make this thing work.
There will be no "average" user in the future. It'll be multi-disciplinary SMEs that are extremely creative and knowledgeable about their businesses.
I don't think that's certain yet, but I do think that the open-source models like Gemma and Qwen are getting so good so fast that even Anthropic has real risk around the long-term value of their models and tooling.
Basically, if I'm Anthropic or xAI, I try to get revenue whenever and wherever possible and see what sticks. There's no value in playing for monopolistic control when everything is so volatile.
We've been there for a while.... creativity has been the primary bottleneck
And the US surveillance capabilities are substantially greater than they were during the Iraq and Vietnam wars. Smuggling in drones or missiles isn't some trivial affair.
And again, if they do that, we just decapitate their leadership again. And again. Until they stop.
Both sides in a conflict (or any negotiation) make demands that they know the other will not accept. You can't just take someone's list like that and assume that'll be the exact outcome.
That's because that's exactly where we're headed, and it's fine.
At some point you have to look at the actual results of policy.