East Texas Landman transplanted to the Big Bend of Texas
Texas, USA
Joined August 2023
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Rush Warren retweeted
Elon Musk now literally holds the off switch on Anthropic's $2 trillion IPO.
Anthropic's filing shows it has agreed to pay Elon's AI company up to $120.5 billion for computing power. And starting early next year, either side can walk away with 90 days' notice.
The deal is with SpaceXAI, the SpaceX unit that used to be xAI, and it rents Anthropic the Nvidia chips that run Claude.
In May, the price was $1.25 billion a month for one data center in Memphis. Reuters reported the confidential draft of this filing put the total at $84.5 billion. The public version filed today says $120.5 billion.
Once all the capacity arrives in December, the bill jumps: Anthropic expects to pay Musk about $3.1 billion every month.
Anthropic reportedly brought in $16.8 billion last quarter, which works out to about $5.6 billion a month. So more than HALF of what Anthropic earns today is about to go to one supplier.
Now here's where it gets really insane:
The lock-in on those contracts ends in January and March 2027. After that, either side can cancel with 90 days' notice. Fortune reported in July that the clause gives SpaceX a way to take its chips back if Grok suddenly needs more.
Grok competes directly with Claude.
And in February, Elon publicly called Anthropic's AI evil.
So the company selling itself to the public as the safe AI lab is about to run a huge share of its product on hardware owned by its loudest critic. That critic also owns a direct competitor, and he can start the 90-day clock in early 2027.
The filing does warn that some of Anthropic's compute suppliers build their own AI models, and that warning reads very differently once the supplier is Elon.
And Elon needs this deal just as badly: SpaceX's CFO has promised $100 billion in annual revenue by the end of this year. At full speed, Anthropic's rent comes to about $9.3 billion a quarter. That's more than the roughly $7.6 billion SpaceX's entire AI business brought in last quarter.
So 2 of the biggest IPOs in history are now holding each other up, and both of them have a 90-day exit.
Anthropic has a real argument here. Computing power is the scarcest thing in AI right now, and Amazon's cloud capacity for 2027 is reportedly largely sold out. The filing even admits Anthropic badly underestimated how much compute it needed in the past. Grabbing every chip on the market is the rational move, and the same clause lets Anthropic leave if cheaper capacity shows up.
But public buyers deserve 2 things before the listing: Anthropic should publish how much of Claude runs on SpaceX hardware and what happens to its customers if that notice ever arrives. And it should get the 90-day exit removed for the full length of the contract, the same way its other big compute bills are locked in.
Until then, anyone buying ANT at $2 trillion has to answer one question for themselves:
Who do they trust to keep Claude running in 2027, Anthropic or Elon Musk?
Anthropic has filed an S-1 registration statement with the SEC related to its proposed IPO.
Read more: anthropic.com/news/s1-sec
Legal disclaimer: A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. This post does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Rush Warren retweeted
WHY NAZI GERMANY WAS NOT A CAPITALIST BUT A SOCIALIST STATE
"The identification of Nazi Germany as a socialist state was one of the many great contributions of Ludwig von Mises."
"When one remembers that the word “Nazi” was an abbreviation for “der Nationalsozialistische Deutsche Arbeiters Partei — in English translation: the National Socialist German Workers’ Party — Mises’s identification might not appear all that noteworthy. For what should one expect the economic system of a country ruled by a party with “socialist” in its name to be but socialism?"
"Nevertheless, apart from Mises and his readers, practically no one thinks of Nazi Germany as a socialist state. It is far more common to believe that it represented a form of capitalism, which is what the Communists and all other Marxists have claimed."
"The basis of the claim that Nazi Germany was capitalist was the fact that most industries in Nazi Germany appeared to be left in private hands."
"What Mises identified was that private ownership of the means of production existed in NAME only under the Nazis and that the ACTUAL SUBSTANCE OF OWNERSHIP of the means of production resided in the German government. For it was the German government and not the NOMINAL private owners that exercised all of the substantive powers of ownership: it, not the nominal private owners, decided what was to be produced, in what quantity, by what methods, and to whom it was to be distributed, as well as what prices would be charged and what wages would be paid, and what dividends or other income the nominal private owners would be permitted to receive. The position of the alleged private owners, Mises showed, was reduced essentially to that of government pensioners."
"DE FACTO government ownership of the means of production, as Mises termed it, was logically implied by such fundamental COLLECTIVIST principles embraced by the Nazis as that the COMMON GOOD comes before the private good and the individual exists as a means to the ends of the State. If the individual is a MEANS to the ends of the State, so too, of course, is his property. Just as he is owned by the State, his property is also owned by the State."
'But what specifically established de facto socialism in Nazi Germany was the introduction of price and wage controls in 1936..." — @GGReisman
MORE in comments.
Rush Warren retweeted
Correct.
Using Starlink, a civilian commercial service, for offensive drone strikes to kill people has never been allowed, nor should it be.
Starshield, a different system, is controlled by the US government. What they decide to do is up to them.
Ukraine military violated Starlink terms of service and used it for offensive drone strikes to kill people. That loophole was closed last week.
Starlink remains critical to the defense of Ukraine, as it is the only system that cannot be jammed or blown up, at least for now. Were Starlink to be turned off, the Ukrainian front line would collapse immediately. This is NOT a threat, it is simply a statement of fact.
Starlink was also crucial to preventing Russia from overrunning Ukraine in the early days of the war, as all other means of communication were destroyed or jammed by Russia.
SpaceX has done more to defend Ukraine than any private company on Earth BY FAR.
That said, I have nothing but UTTER CONTEMPT for the virtue-signaling evil warmongers who push for endless slaughter and offer no realistic solution to the conflict. May you burn in hell.
End of story.
Rush Warren retweeted
Caveman Issues Dire Warning That The Wheel Is Going To Eliminate Countless Jobs buff.ly/u9nCQoL
The left is terrified that Trump might actually save the world. The gyrations that they are going through to spin it negatively is just a continuation of their delusions.
