Labrict retweeted
I've been critical in the past of AI compute indexes and the willingness to price compute based on the spot rental price, but now that the AI reset is sinking into the repricing of AI buildout debt its time to realize that the cost of capital is what determines the price of compute.
The most important number in GPU pricing right now isn't $/GPU-hour. It's the gap between what a hyperscaler pays to borrow (~90bp over Treasuries) and what a neocloud pays (~1,100bp).
The cost of compute is now set by the cost of capital, and the spot rental rate no longer tells you much.
The price of an H100 isn't one number. The same chip in the same rack costs a different amount depending on whose balance sheet it sits on. A ~1,000bp funding gap is a structural cost advantage that no amount of operating skill closes.
For example, take one GPU-hour apart. Most of it isn't power or space. It's paying back the chip, the interest on the loan that bought it, and the return the equity expects. A $40–55k all-in GPU, 75% debt-funded, at ~7,000 utilized hours a year is a financing instrument that happens to do matrix multiplication.
As the +500bp on neocloud debt (10%→15%) adds $0.20–0.30 to the break-even cost of every GPU-hour, which is then added on to the rental price.
That's 8–10% of the H100 index, from a credit spread alone, driven almost entirely by the cost of capital.
That means that the compute spot index is a derivative of the AI infra debt credit curve and the squeeze on neocloud margins.
Labrict retweeted
I'm hiring my next Chief of Staff. You won’t know every field I work in. What matters is how quickly you learn, the questions you ask, and whether you can think from first principles. You’ll help evaluate opportunities and work with founders building consequential companies. Technical background preferred. Three-year commitment. Menlo Park, in person. Apply: jobs.ashbyhq.com/khoslaventu…
Labrict retweeted
And interesting frontier lab strategy would be to encourage distillation, set price that mass distillation is unit economic positive, and then just focus on building the best models. This results is a downstream ecosystem addicted to you. And with no capability to surpass.
Labrict retweeted
AI development is hitting a "power bottleneck"—making this a key area for strategic positioning. After all, chips cannot function without electricity.
Addressing this "shortage" is set to become the next major investment theme. IT power demand for U.S. data centers is projected to surge by 755% to 78.57 gigawatts (GW) by 2029, with demand reaching 97 GW between 2026 and 2028.
With current projects under construction and existing grid reserve capacity totaling only 40 GW, there is a projected power shortfall of 57 GW.
Servers based on the Rubin architecture could drive IT power demand up to five times current levels by 2028. So, should you invest in power-related assets or continue betting on chips? Send me a private message for more stock market insights and information.
Labrict retweeted

Dylan Patel@dylan522pSep 24
United States
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Fentanyl Grade Compute: Why a GB300 Rack Will Out-Price Blow by Weight in 2030
A GB300 NVL72 weighs roughly 1,580 kg fully populated and recent purchase orders put it at $5M per rack.
That is $3,165/kg. Strip out the 1.5 tons of busbar, manifold and coolant and the GPU packages alone are well into gold territory, but we're pricing the rack, because that's what you actually take delivery of.
Where that sits on the illicit commodity curve today ($/kg):
$2,400 Cannabis flower
$3,165 GB300 NVL72
$3,500 Fentanyl
$28,000 Cocaine
$65,000 Heroin
$138,000 Gold
So today NVIDIA ships a product that is denser in value than weed, roughly fentanyl-grade, and still an order of magnitude short of cocaine.
For now...
GB200 NVL72 was $4M, GB300 is ~$5M, and Vera Rubin NVL72 is already quoted at up to $8.8M at essentially the same rack mass. Rack weight is constrained by the datacenter floor loading; rack price is constrained by nothing. That's ~1.75x $/kg per generation with HBM, CoWoS and power all supply-limited through the decade.
Cocaine: Colombia's new president has pledged a hard-line security crackdown with $1B in US aid behind it
Every prior crackdown has consolidated the industry into fewer, better-capitalized operators with better logistics and higher yields per hectare. Consolidation is deflationary.
We model US wholesale drifting from ~$28k/kg toward ~$12k/kg by 2030 as the supply chain professionalizes.
**Crossover: 2030.** Our extrapolated NVL72-class rack hits ~$17k/kg while wholesale cocaine falls to ~$12k/kg. At that point the rational cartel pivots to smuggling racks, except a rack has a fixed 500+ kW power draw, a 3,300 lb forklift requirement and an export-control regime that is actually enforced. Cocaine has none of these problems, which is why it will remain the superior product for anyone without a substation.
Key risks to the thesis: US retail coke is still ~$60–200/g, i.e. $60k–200k/kg so the crossover only holds at wholesale.
Retail compute (H100 hour on a neocloud) is also marked up, so we consider this an apples-to-apples wholesale comparison.
Full model available to Coke Research subscribers. – at San Francisco, CA
Labrict retweeted
i'm still not sure people are fully getting how good opus 5.5
i gave my claude agent fig access to the runway MCP and told it to make a 'high-end netflix style documentary about superintelligence for normies' and...
it came back with this
Labrict retweeted
In the past few weeks, a wide network of X accounts have repeatedly claimed that those raising concerns about AI are merely pawns in a well-funded psyop run by powerful interests.
So I followed the money behind them. Here's what I found 🧵
Labrict retweeted
A lot of people are saying Anthropic has already nerfed Claude Opus 5.5.
We have every BridgeBench result for Opus 5.5 from day 1 of launch.
We're retesting soon.
If the scores drop, you'll see it here first.
Have you noticed a difference?
Labrict retweeted
America’s corporate governance system is broken, and it’s killing public companies. Look no further than Cracker Barrel: Decades of brutal mismanagement have seen one incompetent CEO after another walk away with a massive paycheck while customers and actual shareholders take a beating.
Why does this keep happening? Because proxy advisory firms like ISS are corrupt. They blindly rubber-stamp failing boards year after year, protecting the corporate elite while burning shareholder value to the ground.
The root of the rot is index funds. There's no question that indexing one's money is a smart financial move for most people. But just because you passively index your investments doesn't mean your corporate votes should be handed over to the managers of your fund so they can play politics. Right now, passive funds hold massive, unchecked voting blocks while having zero skin in the game themselves.
It is time for a simple rewrite of the rules: We need to index the votes of index fund investors.
Passive index funds should be forced to automatically split their votes to proportionately mirror those of retail and active institutional shareholders — the people actually doing the research, risking their capital, and fighting for performance in the companies they hold shares in. No more rubber-stamping. A change like this will immediately strip corrupt gatekeepers like ISS of their toxic influence.
True accountability happens when lazy, overpaid boards actually answer to the stakeholders they represent, rather than screwing them over.
Actual, logic-driven governance when your money is passive happens when your vote passively follows the voting decisions of the actual market.
We need to stop letting passive capital protect active incompetence. By stripping index funds of their arbitrary voting power and empowering engaged investors, we will finally torch corporate cronyism and usher American capital markets into a golden age of capitalism.
Labrict retweeted
Here's the newest private equity structure (bottom to top):
> Layer #1 - a portfolio company borrows to fund its own buyout.
Normal course, fine.
> Layer #2 - the buyout fund that owns it borrows against its portfolio.
Ok, guess that's reasonable.
> Layer #3 - a secondaries fund buys a stake in that buyout fund, then borrows against the stake.
Getting spicier 🔥
> Layer #4 - that borrowing gets sliced into senior and junior, and the senior piece is sold to insurers, rated just high enough for them to own.
Voila. Perfection. 🤌
Labrict retweeted

Cloudflare@CloudflareSep 17
United States!
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The Open Agent Framework. Write once, deploy anywhere, use any LLM.
Labrict retweeted
The next time someone asks “wHaT dOEs paLaNTiR evEN dO?”, I’m just going to send them this video:
$PLTR
Labrict retweeted
🚨 1/ Watch this AI Doomer trailer. Then read the timeline.
Netflix drops “The AI Apocaloptimist Doc” tomorrow — Sept 15 — to 260+ million subscribers.
This film took 3 years to make. It premieres 12 days after Sanders–Casar, 7 days after the Anthropic “whistleblower,” 3 days after Amodei’s “Pace the Frontier.”
That’s not a coincidence. That’s a launch. 🧵👇
H/t @TheRoyalGrift for the scoop.
Labrict retweeted

Chamath Palihapitiya@chamathSep 13
United States
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This is worth reading…
1) AI will not eradicate humanity. Humans survived an ice age, the Black Death, two world wars, and (so far) the advent of nuclear weapons. Anyone who is loudly warning of AI-caused human extinction should not be taken seriously.
2) If you worked in a company where you anticipated a 10% chance that your product would kill ten people, let alone all people, the correct response would be horror, ceasing all operations, and likely contacting the police or other criminal authorities. I am obviously no Coxon booster but at least his behavior is in line with his stated beliefs. Any current AI company employees saying "yes, me too, the thing we are building and about to IPO may kill all humans" should, again, not be taken seriously. Their actions betray their actual beliefs.
3) Antitrust law does not prevent AI companies from coordinating to make sure AI does not hurt people. It does not prevent companies working together to make sure it doesn't hack people; the DOJ and FTC made this clear a decade ago when they issued a policy statement saying that the agencies "do not believe that antitrust is – or should be – a roadblock to legitimate cybersecurity information sharing." The same principles apply here. See: justice.gov/archives/opa/pr/…
4) Antitrust law does absolutely prevent AI companies from organizing to prevent the entry of cheaper, upstart rivals because the bigger companies are burning cash and failing to achieve sufficient profitability. The panic of individual employees may be sincere if misguided, but the moves by their CEOs to achieve some kind of broad "antitrust waiver" or "exemption" should be meet with deep skepticism in light of the economics of the industry and the threat they face from open models.
Labrict retweeted
Law enforcers already have authority to charge companies and their CEOs for creating and releasing dangerous, unvetted, or defective products. We shouldn’t let discussions about new legal regimes distract from the fact that there’s no AI exemption from laws already on the books — a point @FTC emphasized repeatedly during my tenure.
1. There is an extensive set of laws that govern dangerous and defective products. For example, releasing unvetted AI models or agents can violate consumer protection laws. Shipping flawed AI tools without implementing adequate measures to detect and stop rogue or defective AI agents can be an “unfair or deceptive” act or practice under the FTC Act (and analogous state laws). And some state AGs are already exploring holding AI firms and their CEOs criminally liable when their models participate in criminal activity.
2. Existing laws also prohibit “unfair methods of competition.” This covers instances where AI firms appropriate the competitively sensitive information of their customers, including through tracking their use of various tools. It can also cover instances where firms pursue dangerous behavior, aware that doing so may compel rivals to do the same.
As the Supreme Court has noted: “A method of competition which casts upon one's competitors the burden of the loss of business unless they will descend to a practice which they are under a powerful moral compulsion not to adopt, even though it is not criminal, was thought to involve the kind of unfairness at which the [unfair methods of competition] statute was aimed."
3. The highly concentrated and interconnected structure of these markets could be creating major risks and conflicts of interest. We had started investigating these partnerships and cross-investments across the stack (and released a preliminarily overview of some findings: ftc.gov/news-events/news/pre…).
Both federal and state enforcers should be scrutinizing these opaque relationships and inter-dependencies. We are already seeing how these relationships could undermine accountability. For example, OpenAI could face liability given the Hugging Face incident, but Hugging Face being bought up by Nvidia means that we’re unlikely to see it file a lawsuit over this — given Nvidia’s strong incentive to see OpenAI continue full speed ahead.
4. As AI tools dramatically change the landscape of cybersecurity risks and hacks, all businesses should be doubling down on having core security protections in place. Firms that fail to invest in adequate data security measures or fix known vulnerabilities can also be breaking the law. A recent analysis showed that around 1/3 of Fortune 100 companies do not even have a way to notify them about security issues. During my @FTC tenure, we sued firms for poor data security practices and held CEOs liable when they were personally responsible.
this.weekinsecurity.com/doze…
ftc.gov/news-events/news/pre…
5. As policymakers consider new legal regimes, we should be looking to lessons from prior efforts to govern major sectors, such as banking and other networks, platforms, and utilities. Tools like structural separations, nondiscrimination, and supervision could be key, and there’s a rich history of what works and what doesn’t. But we can and must pursue any new efforts alongside enforcing existing laws.
Labrict retweeted
By the end of the day, he's going to rebuild every operating system.
Check out his feed, just incredible.
@OpenAI just wow. thank you.
A working, Excel-inspired spreadsheet application in plain HTML, CSS, and JavaScript, with a real formula engine, editable worksheets, an implemented WebGPU renderer, and automatic Canvas2D fallback. GPT 6 Pro goes numbers. wieslawsoltes.github.io/Grid…






























