Christian Genco

Co-founder/CTO of (AI consulting for private equity firms and their portfolio companies). Founder of Father of two.

[Christian Genco @cgenco]

Executives on these AI consulting jobs keep asking me "what is AI?"

But to really understand AI, you've first gotta understand the basics of how a computer works.

Here's my entire undergraduate computer science degree summarized for your C-suite:

[Christian Genco @cgenco]

@Rick_in_ICT @paulg Sounds like you have better taste than me 😅

[Christian Genco @cgenco]

@Patrickcanion @SkiadaX @GeminiApp Just stop being European.

[Gray Connolly @GrayConnolly]

Am no shrink but the maxim "the boy is the father of the man" is the single most wise insight into men that I am aware of

[Christian Genco @cgenco]

Me using Claude Opus 4.8 to run `git add . && git commit -m "updates"`

[Justine Moore @venturetwins]

Me using Claude Opus 4.8 to rename a file

[Christian Genco @cgenco]

@timsoulo @GaelBreton Interesting play making it a standalone chat. I feel like @coreyhainesco marketing tools repo accomplishes the same sort of thing but it’s BYO-model and harness.

[Christian Genco @cgenco]

@hnshah This graph took me like four minutes to understand 😩

[Christian Genco @cgenco]

@jitbit Oh! I see what you’re saying.

I A/B test all the time and I really struggle with GPT 5.5 being so incredibly painfully verbose. It might just be a prompting issue, I’ll give it another shot. Gemini has been basically interchangeable with Opus 3.7 for me recently.

[Christian Genco @cgenco]

The Claude Pro Max plan is the greatest deal in history.

For $200 you get like $20k of frontier-level tokens.

Anthropic is funding your seed round.

[Christian Genco @cgenco]

@jitbit Claude pro max is $200

[Christian Genco @cgenco]

@EntropyDenier It solves the problem of scaling electricity as you scale your compute.

[Christian Genco @cgenco]

XAI is going to have the best models in 6-12 months and nobody is ever going to catch up.

[bubble boi @bubbleboi]

People underestimate xAI at their own peril. They’re the real wild card in the AI race, and the bigger picture reveals an actual strategy to not just leapfrog the competition but to become the only winner in AI. It’s eerily similar to the playbook John D. Rockefeller ran with Standard Oil.

If you look at the funding picture today OpenAI just raised $122B (that they’re lighting on fire) and Anthropic has raised ~$72B in its entire lifetime. xAI in comparison has raised meaningfully less than either. But xAI somehow already has the most compute online right now, and the capital structure is about to flip that’s going to turn them into one of the largest free cash flow machines in history.

SpaceX filed its S-1 last week targeting a ~$75B raise at a 1.72 trillion valuation and although most of that is going to go to Starlink and Starship, the detail many are missing is that xAI now sits inside a public-company balance sheet with access to huge institutional debt markets that pure AI labs don’t have. OpenAI and Anthropic have to keep selling equity to fund compute while xAI can issue investment-grade paper against Starlink’s $4.4B in operating income, giving it a dramatically lower effective cost of capital which is critical in this gold rush to expand compute infrastructure and capture market share.

If you then look closer at the Colossus deal with Anthropic xAI gets ~$40B to rent out their old infrastructure which allows them to monetize a depreciating asset at a higher rate than they were getting from internal use, as well as control a competitor’s inference economics, and recycles the cash into Colossus 2. This is a Rockefeller move no doubt. What many don’t understand is that Standard Oil didn’t just refine oil. It owned the rail rebates which in turn made their competitors pay them every time they shipped a barrel. Rockefeller’s rivals literally funded the monopoly’s expansion and similar to today with a severely supply constrained compute market anyone with cheap power right now can pull such a move (Colossus taping into the Natural Gas pipeline was another genius move for many other reasons).

This matters a lot more than people think right now because we are still in the blitzkrieg part of the AI build out but as we shift from training to inference, compute capacity will directly equal revenue capacity. The pre-training benchmark game the AI labs are playing right now is hitting marginal returns. The customer-serving game is just starting, and whoever has the most power online and the best economics wins it.

When you factor in the SpaceX IPO, public debt access, $40B of incoming Anthropic revenue (and many more deals to be announced soon I believe) as well as the first operational gigawatt cluster with Colossus 2 we are going to see a sea change in the industry. Power, uptime, and compute access will be all that matters. If I am right I expect consolidation with the big AI labs and AI services. The recent mergers & buyouts with SpaceX are just the start.

[Christian Genco @cgenco]

@aarondfrancis He’s playing the long term games the smartest.

The bottlenecks of smarter models are data, chips, and energy and he’s 1) got a firehose of X and Cursor data, 2) building his own chips and 3) getting energy from space.

How could anyone compete?

[Christian Genco @cgenco]

@EntropyDenier I can predict who’s going to have the most access to space electricity with pretty high certainty.

[Christian Genco @cgenco]

@yashbindal__ @aarondfrancis Retweets lead to carrying his children so yeah it’s my moonshot.

[Christian Genco @cgenco]

@jitbit $200 < $2k

[Christian Genco @cgenco]

@arihanxv More economical for sure, but Opus 4.7 is the better model.

Gemini is a close second and a much better deal if you’re paying for raw tokens.

[Christian Genco @cgenco]

@buildwithparas Still ahead on Claude pro max.

[David Sacks @DavidSacks]

Q: How are job postings for software engineers rising rapidly despite AI agents automating coding?

A: Because there’s far more code to manage than ever before. We’re already seeing a 14x YoY increase in GitHub commits, and it’s accelerating.

AI has dramatically lowered the cost of writing code, so it’s now being used across far more businesses, applications, and use cases.

We’re at the beginning of a massive productivity boom driven by the proliferation of bespoke software throughout the entire economy.

Coding has been AI’s breakout use case this year. The fact that it’s increased demand for software engineers — rather than decreased it — should call into question the entire “AI will cause mass job loss” narrative.

[Mitchell Hashimoto @mitchellh]

Fork your dependencies, trim them to only your use case, never update unless it breaks for your users. I’ve been vocal about this for 10+ years. I’ve always said that updating is way riskier than latent bugs (which can be tracked and CVEs monitored).

If you are updating a dependency, it’s on you to analyze every single commit in the full transitive set of dependencies. If you dont see anything compelling, dont update!

I remember at HashiCorp once in awhile an engineer would try to update a dep or replace a DIY lib with an external one and id always ask “show me the commit we need.” Dont update for the sake of it.

Feeling pretty swell about this mentality with all the supply chain attacks happening.