LBO firm will create a new company called Acquisition Co. ("AcqCo") and put $500K of cash into it (equity). The Blue Owl will lend $2M to AcqCo (debt). AcqCo uses the $2.5M to buy the vet clinic. AcqCo will use cash flow from vet clinic to pay Blue Owl loan interest. If AI makes vet clinic lose revenue because customers treat Fluffy's ear infection at home, then Blue Owl and LBO firm are in trouble.
So the debt isn't "pushed" and it's not risk-free as the original comment said... also not Venture Capital. Lots wrong in that comment.
Your blog article stopped at token generation... you need to continue to revenue per token. Then go even further... The revenue for AI company is a cost for the AI customer. Where is the AI customer going to get incremental profits from the cost of AI.
For short searches, the revenue per token is zero. The next step is $20 per month. For coding it's $100 per month. With the competition between Gemini, Grok, ChatGPT... it's not going higher. Maybe it goes lower since it's part of Google's playbook to give away things for free.
Yeah, I thought it was weird right away too, but brush it off as a tech blog... but then I realized it's actually a finance website. Ruins the credibility of the website instantly.
The $4B revolver will likely sit undrawn. When it gets drawn, there usually a specific plan to reduce it back to zero. It's not for building data centres, a revolver typically used just for timing differences like a credit card is used (and the lenders will be paying attention). Also, when things get bad, there are covenant triggers which would allow lenders to renegotiate.
My 82 year old mother has enough trouble figuring out what is a button vs. what's not. She just taps everything on screen to find out. This is going to make it worse.
It's not only meaningless due to T-Mobile being untrustworthy, it's meaningless if it's for a specific network speed or volume. For example, would 3G and a 2GB plan for $50 lifetime guarantee be useful?
My boss would take a piece of data/input and run it through the entire process. It's a string data here, converts to number here, function transforms it here, summarized here, output format there... You wouldn't run into data type issues or have an epiphany that you're missing a data requirement.
If you create the plan like a mathematical formula like my boss did, the evidence becomes irrefutable... like a mathematical proof. The article does mention that the plan is communication tool.
I had a boss who had a math degree. He'd map out the flow from start to finish on a whiteboard like you see mathematicians on TV/movies. Always had the smoothest projects because he could foresee problems way in advance. If there was a problem or uncertainty identified, we'd just model that part. Then go back to whiteboard and continue.
An analogy is planning a road trip with a map. The way design docs most are built now, it shows the path and you start driving. Whereas my bosses whiteboard maps "over-planned" where you'd stop for fuel, attraction hours, docs required to cross border, budget $ for everything, emergency kit, Plan A, Plan B.
Super tedious, but way better than using throwaway code. Not over-planning feels lazy to me now
Sure, everyone has a plan until you get punched in the mouth; however, that saying applies to war, politics, negotiations, but not coding.
If any Excel alternative wants to make a dent in market share, they need an option for users to mimic all the main Excel shortcuts. Google Sheets is close so it's useable; however, trying to use something like Apple Numbers is like switching from querty to dvorak.
The general advice is to have top of monitor at eye level, but it's been wrong advice for me personally. I now put the middle of the monitor at eye level. Keeps my head up and posture better. Leaning back instead of stooping.
As part of an intro to optimization class in university, we inputted gov't nutrition health guidelines and the McDonalds nutritional menu into a model. Solved how we could hit the health guidelines (min and maximums) by only eating McDs. Basic conclusion is McDs is fine if you don't eat the fries or sodas.
The book "Fast Food Nation" was an optional reading. It explained how McD single-handedly improved the quality of beef and potato industry in the US.
Yes, it's similar to someone buying land in California. You still "own" the land, but it's still in United States. Ras el-Hekma is still in Egypt. It just happens to be owned by UAE.
You're not asking the correct questions as an interviewer. You should be asking specific questions about projects they've worked on, or about them personally to get to know them. ChatGPT should not be able to answer. Pretend you're Harrison Ford in Blade Runner.
Elon Musk single handedly pushing usage of solar and reducing fossil fuels in cars. Jeff Bezo drove costs down for consumer products. Peter Thiel and Elon at PayPal reduced financial transaction costs... and then you're complaining they didn't do enough?
Definitely gets the point across in an instant. Excellent marketing.
It's insanity that even when Messages.app is closed, the messages still pop up. Even when not screensharing - I still get an audible ding sound when I'm on video conference.
The gov't isn't really in control of housing prices. First, they (congress + Fed) have some tools but they can be limited in effectiveness. Second, gov't doesn't seem to be functioning effectively themselves right now.
So the debt isn't "pushed" and it's not risk-free as the original comment said... also not Venture Capital. Lots wrong in that comment.