Could be more comparable to Clubhouse, which VCs quickly piled $100m into[1a], and which Clubhouse notably turned into layoffs [1b]. In this case, the $1b in funding and high valuation might function predominantly as a deterrent to any flippers (in contrast, many Clubhouse investors got quick gains).
Moreover, the majority of the capital likely goes into GPU hardware and/or opex, which VCs have currently arbitraged themselves [3], so to some extent this is VCs literally paying themselves to pay off their own hardware bet.
While hints of the ambition of the Manhattan project might be there, the economics really are not.
Moreover, the majority of the capital likely goes into GPU hardware and/or opex, which VCs have currently arbitraged themselves [3], so to some extent this is VCs literally paying themselves to pay off their own hardware bet.
While hints of the ambition of the Manhattan project might be there, the economics really are not.
[1a] https://www.getpin.xyz/post/clubhouse-lessons-for-investors [1b] https://www.theverge.com/2023/4/27/23701144/clubhouse-layoff... [3] https://observer.com/2024/07/andreessen-horowitz-stocking-ai...