[raincole]

Now use common accounting standard and amortize the cost.

Oh it doesn't fit the narrative. Never mind then.

[BirAdam]

The depreciation is also insane and thus to sustain operations and improve, the spend will keep going.

[locusofself]

I assume you are saying it would look less ridiculous? By how much?

[bandrami]

If OpenAI and Anthropic adopted GAAP nobody would be able to invest in them it would be so bad

[unmole]

Yeah, institutional investors who plowed billions into them are unsophisticated rubes who got hoodwinked because they don't get GAAP. And it's not like both OpenAI and Anthropic are both going to IPO soon which would require disclosures far beyond GAAP numbers. /s

[bandrami]

I take it you weren't alive in 2008 if you say that sarcastically

[unmole]

You should do a Michael Burry and go short. Clearly you seem to think you are much better informed, put your money where your mouth is.

[bandrami]

Shorting isn't the magic trick people seem to think it is, but yes I'm heavily hedged for OpenAI's IPO failing and taking Oracle down with it

[collingreen]

In what ways do common accounting standards and amortizing the costs (this is tricky for ai and the current batch of gpus I hear!) change the data presented here? Does it detract from the point? Completely contradict it?

You can turn your drive-by dismissal into something really informative if you want to.

[raincole]

First of all, the whole website is based on what the CEOs said they're going to spend. Not the actual money spent. So there is no real 'data' presented here or to contradict.

Second, even if you take CEOs' words at face value, they didn't distinguish the capex for hardware, electricity, software and salary. You can make up whatever the percentage for hardware and the depreciation rate you believe and fit an arbitrary narrative.