CapEx

“I think it's pretty much bottomed out. I think we've pretty much taken most of the OPEX, or rather, most of the CAPEX involved in starting a business making an OPEX. I'm not sure it goes down much from here, because now you're down to people costs, And real es…”

“Microsoft CapEx as a percentage of revenue has crept up to 25%.”

“When they were all SaaS recurring revenue businesses, all seat based, all 90%, 80% gross margin with no CapEx, Right? All enterprise sales with low churn. It absolutely made sense. You could compare two companies, and that's why by 2019 or 20, it almost felt l…”

“And the capital intensity for every dollar of run rate revenue, it probably takes four or five dollars of CapEx to support that, right?”

“Every dollar of revenue that Antropic does means someone, either Antropic or its partners, has to invest three or four x in CapEx because it's just expensive in terms of compute to service AI.”

“These same companies are doubling down on CapEx, letting it grow 50, 60%, such that CapEx is now eating most of their free cash flow.”