SF Compute CEO @evanjconrad says if there's an AI bubble, VCs funding AI labs at massive valuations are the ones holding the risk. "If you're looking for a bubble, it's held currently by the venture capitalists." "The AI bubble works like this: the cloud itself doesn't deploy the GPU cluster until they have the contract in hand from the customer." "Then they force the customer to pay them a massive deposit upfront so that they can give it to the OEM, who then gives it off to Nvidia." "But the AI lab itself doesn't have that capital yet because they need it for the future. So they go off and they raise money at massive valuations." "And all the VCs look around and say, 'Well, I guess we missed out on OpenAI and Anthropic. Maybe these people will be OpenAI and Anthropic too. We'll go with the big valuation.'" "But then the venture capitalist owns the risk." ▻
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SF Compute CEO @evanjconrad says if there's an AI bubble, VCs funding AI labs at massive valuations are the ones holding the risk. "If you're looking for a bubble, it's held currently by the venture capitalists." "The AI bubble works like this: the cloud itse
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