Danielle Fong's base case for frontier labs: inflate equity, hoover compute, then raise prices like a cartel
DanielleFong · x · 2026-10-13
Responding to Rohit Krishnan's point that frontier labs face compressing margins and must build new businesses, Danielle Fong lays out what she sees as the obvious base case:
- Keep scaling and inflating equity value faster than the rest of the economy
- Keep purchasing more than half of the compute
- When cheap money runs out, increase prices "like a cartel"
- Enforce the lead via internal models
Her jab: if this isn't the base case of the metas' game theory, what are you even doing.
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