Scoop from Madison Mills at Axios, reinforcing what I said here the other day:This is bad news for the AI industry, and fits well with what I warned about on Tuesday, adding in particular to the concerns from there that I circled below:§One big reason why Anthropic is having a blowout quarter (aside from the massive one time subsidy that they got from SpaceX) is that companies have been “tokenmaxxing” for the last few months, encouraging employees to use GenAI as much possible, without much regard to payoff. That means lots of short-term revenue to Anthropic and OpenAI, but it never seemed like a sustainable idea to me:A month later, it already looks like the moment has passed; tokenmaxxing may have jacked up...
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