Why smarter AI models could drive up compute prices 10x

Today, I want to talk about what the compute situation for the labs will look like over the next few years. For the last three consecutive years, Anthropic's revenue has 10x year over year, and it's likely to do so again this year.

It goes beyond the title with direct discussion of compute, year, think, including: For the last three consecutive years, Anthropic's revenue has 10x year over year, and it's likely to do so again this year.

1. 01Or three, the percentage of compute that labs spent on inference rather than training has to increase
2. 02With regards to the margins, Anthropix inference margins reportedly went from 40% in the middle of last year to upwards of 80% now available
3. 03And with regards to the share of compute that goes to trading versus inference, in 2024, according to EPOC, OpenAI was spending just a quarter of its compute on inference, and that