ROT — Return on Tokens. We all knew we would end up here at some point. Tokenmaxxing was a dumb idea from the start. It’s just that when everyone is drinking from the coolaid it’s hard to resist. But for some of us it’s been clear as day for years that first we will see
ECONOMY
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Commentary links GLM progress to model convergence and pricing pressure
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GLM 5.2 is the ultimate culmination of what i have argued here for the last three years. no technical moat and widely known formula -) convergence -) price wars -) small or negative margins.
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Commentary discusses frontier pricing pressure and generative AI margins
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Thanks for engaging.
1. I expect price wars at the frontier soon (and one could argue there has already been some strong downward pressure).
2. Curious who in the GenAI world aside from Nvidia has solid margins. (Suno is one example but there don’t seem to be many.)
3. My claims -
Commentary questions Fable delay’s impact on Anthropic’s June revenue
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do you want to bet with me on the revenue of Anthropic in June? Bet it was massive and didn't slow down one bit because of the delay of release of Fable 5.
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AI data center growth drives demand for gas turbines
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How The AI Boom Is Causing A Surge In Demand For Gas Turbines? https://
youtu.be/gk8ziQCWK1w?si
=oL1_OWAo_tiW5Opj
… via @YouTube #AI #artificialintelligence #datacentre #gasturbine #tech @AlbertoEMachado @Eli_Krumova @postoff25 @Khulood_Almani @anand_narang @NutritiousMind @baski_LA @TanyaSinha_ -
OpenAI fails to provide GDPval measure for GPT 5.6
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Annoying that OpenAI doesn’t seem to give a GDPval measure for GPT 5.6. One of the best measures of economically valuable work.
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Open models have better dollar per token than closed APIs
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An interesting way to take Noam at his word in regards to always keeping a constant inference budget for any eval reporting –
— swyx @aiDotEngineer WF (@swyx) 27 juin 2026
is that open models have a lot more dollar per token mileage than closed model APIs. So anyone launching an open model today or situationally… https://t.co/vGl7tQZgWnAn interesting way to take Noam at his word in regards to always keeping a constant inference budget for any eval reporting – is that open models have a lot more dollar per token mileage than closed model APIs. So anyone launching an open model today or situationally
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AI buildup key to US prosperity, bans worse than tariffs
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Yeah, people don’t realize how much of the recent US prosperity has been tied down to the AI buildup. If these bans and restrictions remain, this could affect the entire economy 100x worse than the tariffs.
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GPT-5.5-Pro vs Y axis: triangulating spend at $500k/week
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Next in the series of GPT-5.5-Pro vs the Y axis, where we try to triangulate information to add the missing axes. Explanation:
"I anchored the top of the chart at roughly $1M/week because that makes the latest spend about $500k/week, or ~$500 per employee per month for -
Survey: 1 in 3 employers replacing entry-level jobs with AI
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A new GMAC survey of 600+ recruiters found that 1 in 3 employers say they are replacing entry-level jobs with AI. Tech is hit hardest: 40% of employers in the industry said AI is replacing junior roles, followed closely by manufacturing. The sharp line from GMAC: "Employers are