The hypothesis is completely wrong. With AI, juniors can catch up with the codebase / domain must faster and deeper than before. It's just a matter of putting time.
The average person spends 2,800 with prime or 1100 without. 75% of Amazon shoppers have prime so about $2500 a year. Amazon collects 35% on each sale where they ship and package for you.
Amazon makes 800 dollars off of each person in revenue.
You have (limited) 100 Coke cans to sell (that you bought for say $1)
There are two large lines being formed for that. One line is offering an average $3 per bottle and another line is offering an average $2 per bottle.
Tell me which line they would throttle/starve even though they make a profit out of it.
Also, when the lines were formed you had no idea of the average price, but now you are getting a clear picture. Would you change your strategy / pricing or stick with your original "give the bottle to everyone for the same initial $1 price"
If I owned two lines both selling the same thing (preumably here Coke is a stand-in for compute), I would throttle the $2 dollar line. People without a choice might move to the $3 dollar line.
Unfortunately, back in the real world, Anthropic is dealing with two issues:
1. They're throttling all lines. Their latest model uses more tokens overall. Tokens are being rationed and context is being lowered.
2. There's another line for Pepsi right over there. And it costs $1.25 per can.
Anthropic should be lowering their price to compete with OpenAI, but they're not. They're making it even more expensive.
So tell me, does that really look like Anthropic is running a (as some people say) >50% profit margin?
for all you know, you think you are standing in the $3 line, but it really is $2 line and $3 line is BigCos, Govt and others who have guaranteed demand for several years.
Like I said, majority of people (including smart ones) are going to be surprised by the profit margins of AI labs and there will be a mad rush to buy AI stocks till it reaches bubble proportions.
2025 was merely a 1996 "Irrational Exuberance" moment. We haven't seen the late 1999 mania yet
If you think AI can replace an SRE in 2026 April, I've got a bridge to sell you. I'm not saying "don't use AI." I'm saying don't turn off your brain and let AI drop your production database.
I'm pretty sure ai-x writes sarcasm and skips the /s for pure fun. Personally, I'm amused and I like what he's doing. Others have done it before him though, it's not a new trick.
Which is a good thing. Elon has showed the world, the only thing that limits the upper bound is bureaucracy, extreme risk-averse and no culture for experimenting.
More and more companies will start operating on the correct reward/risk curve or else getting crushed by firms who do. OpenAI has forced Google, Apple, Meta out of their comfort zone because they know OpenAI will eat their lunch
Literally every part of this comment is confusing. Elon hasn't shown anyone anything interesting in at least a decade. OpenAI hasn't forced Apple to do anything - LLMs aren't impinging on hardware or bundled services, and this literally seems right up Google's alley (and they're arguably better at it than OpenAI has demonstrated, now that first-mover-ish is long past).
I suppose Meta's recent comfort zone was simply a stupid bet on VR, so sure, maybe one part of the comment isn't confusing.
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