Revenue per Megawatt & The AI Model Factory

An AI model company buys wholesale electricity by the megawatt & resells it as cognitive work. “The base cost of compute tends to be around 10 or 13 or $15 million per megawatt. In the case of Anthropic, the revenue has gone as high as $50 million per megawatt. And what that now enables them to do is, hey, if I spend 10 bucks on inference capacity, I actually generate 50 bucks of revenue. And then I can turn around and incrementally spend all of that profit on training.” — Dylan Patel, SemiAnaly...