FT: "Goldman Sachs analysts last month predicted that use of AI agents would result in a 24-fold increase in token consumption by 2030 and that the huge rise in demand would exacerbate a shortage of chips over the next 12 to 18 months. While token usage and AI spending by businesses continue to grow, efforts to curb costs could weigh on the growth of the world’s largest AI labs such as Anthropic and OpenAI, which plan to go public later this year at near-trillion-dollar valuations. Since the start of the year, Chinese AI models have overtaken their US counterparts in token consumption, according to data from OpenRouter, an aggregation platform that allows users to access multiple AI models. China’s cheaper energy and more efficient models have allowed the country’s AI labs to charge less than leading US groups for tokens, giving China a new edge on the AI battleground."
Again, I believe market participants are underestimating the pricing power challenges US hyperscalers face, both due to domestic and international competition. As I wrote in my December report on "GenAI & Productivity" (https://t.co/kEx5Z4BJH7):
"While there’s a lot of speculative fear about how a single LLM could rise to dominance and what that could mean for economic, societal, and political stability, we believe the bigger concern for investors today is how relative model parity could compromise pricing power. Tech giants have thrived on monopolies and duopolies for a decade or more. Now, they’re in an LLM arms race where it’s unclear when or even if ever leadership will be sustainable. We believe competition from akin models will apply downward pressure on pricing at least for the next three years."
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FT link: https://t.co/xssgGXkLtb
SpaceX has exercised the option to acquire @cursor_ai in an all-stock transaction with the goal of building the world’s most useful AI models.
For the past few months, SpaceXAI has been jointly training a model with Cursor, which will be released in Cursor and Grok Build soon.
We look forward to working closely with the Cursor team to advance our frontier AI capabilities
Obsess. For f*ck sakes. You only get one life. Don’t screw it up by being normal. Go all in. Act like a psycho. Let people call you insane. Please. I beg you. Obsession is the path.
Connecting young people to digital networks serves no purpose if they remain disconnected from themselves, others, and their own interiority. We must help young people rediscover silence, reflection, the ability to ask questions, the depth of relationships, and openness to transcendence. To listen to the soul, we must lend an ear, because the soul's voice is not a shout, but a whisper.
Composer 2.5 scores 62 on the Artificial Analysis Coding Agent Index.
The two models above it score 65 and 66.
The price difference: $0.07 per task vs. $4–5.
At some point "slightly better" stops being worth "60x more expensive," and most engineering teams crossed that point a while ago.
60x.