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Gavin Baker, CIO at Atreides Management, discusses how increases in token throughput per watt that outpace declines in token price can lead to net expansion in revenue per gigawatt.
He adds that as models become more advanced, they enable end users to perform higher value tasks, which can justify increased costs.
Baker has previously noted that financing rates for GPUs and ASICs have real implications for demand over time. He has also highlighted TSM management's disciplined approach to capacity. Both factors remain relevant as rising token throughput and model complexity reshape revenue potential in the sector.