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The most basic way AI could blow up imo. I'm not saying it does but this is the most obvious way I can see it happening - Per seat subscriptions are massively subsidized. The flat fee was priced way below what heavy usage actually costs - For real business use you have to move to the API anyway. Data protections, work integrations and compliance officer approval - On the API you pay metered rates, and businesses are burning credits way faster than the per seat pricing ever led them to expect - This is everywhere right now. Internally for us, Codex users, Uber torching its entire 2026 AI budget in 4 months, the Microsoft comments. Just go try an API I shared more on this here: x.com/Shaughnessy119… - And I don't think most businesses have the money to keep paying increasing API rates without a real change to how they operate (caps needed) - Because they have a cheap alternative. They can reach open source models through any aggregator (OpenRouter, Venice, Baseten, Together) and still get strong privacy. Venice private data centers, or E2EE/TEE serving GLM 5.1. More on open source inference provider raises here: x.com/Shaughnessy119… - And the discount is enormous. DeepSeek V4 codes within a hair of Opus on SWE bench at roughly 1/30th the price, and the cheapest open models run closer to 1/100th - Chinese labs open source frontier grade models. The model is the single biggest cost an inference provider has, and they get it for free - This idea dies if China goes closed source. That is actually bullish web2 AI labs, because if everyone is closed you pay up for the best intelligence. China goes closed source if they are tired of giving away an asset and they want the revenue and data flow to train new models - Is this showing up in web2 AI lab revenue yet? No. Revenue is off the charts. Anthropic went from 9B to 47B run rate in five months - So go forward, what happens? - I think revenue slowly starts leaking to the open source inference providers (see Venice usage, OpenRouter's $113M raise, Baseten is raising at $11B or triple its valuation in three months, on revenue that went from $200M to $600M annualized in a single quarter) - It doesnt move overnight, but it caps the labs ability to raise prices, and margins are already deeply negative. OpenAI is reportedly running near negative 122% - With margins that bad there is no cash flow, so the labs are fully dependent on outside capital to buy GPUs, train models, and keep subsidizing usage (I.e. see Google tapping $80b equity sale, granted 30b for employee RSU taxes. Clearly they think Equity is overvalued or you wouldn't sell it) - The break comes when that capital stops. Pricing is capped so margins cant improve, and the moment investors lose conviction on payback, the whole flow reverses - Why would they lose conviction on payback? Back to the start - the inability to improve margins or get businesses to pay more - This is also limiting, if we start making new drugs with AI or create entirely new businesses, you better believe people will pay up to the max for AI usage

Singapore, see you next week 🇸🇬 During @superai_conf week, @base is bringing together some of the leading minds across AI, Web3, and the onchain economy for an afternoon of keynotes, panel discussions, and networking. Featuring speakers from @alibaba_cloud, @animocabrands, @hellominds_ and @ThetanutsFi. 📅10 June Wednesday | 2PM–5PM 📍Rasa Space, Singapore RSVP via link below👇

Today we’re expanding our support for @HyperliquidX by becoming the platform’s official treasury deployer of USDC. Onchain markets operate 24/7 and require collateral that is always available, instantly transferable, and deeply liquid - USDC delivers exactly that. Alongside this, we’ve also significantly increased our position of staked HYPE.

nice to see @base cruising at 550 TPS the chain can now burst up to 5K TPS, with a bunch more headroom coming in the months ahead now that we're on our own stack post-Azul team has been doing an incredible job scaling

Singapore, see you next week 🇸🇬 During @superai_conf week, @base is bringing together some of the leading minds across AI, Web3, and the onchain economy for an afternoon of keynotes, panel discussions, and networking. Featuring speakers from @alibaba_cloud, @animocabrands, @hellominds_ and @ThetanutsFi. 📅10 June Wednesday | 2PM–5PM 📍Rasa Space, Singapore RSVP via link below👇

I want to be extremely clear: We are not just a crypto project. We are not just a @bankrbot ecosystem project. That is point blank insulting. We are not a @base project (that is even more insulting). We were thrown into that box because we got yes brod into a token that we didn't launch. We are $rootAI. We are a unicorn in the making and we will speed run to our true valuation which is unicorn status. Rootedge.ai is just our first product suite. What we are about to do will change the industry, and more than just the crypto industry. We are about to drop a white paper that will absolutely nuke VC investment market share of start up equity in block chain and beyond. $rootAI will and is focused on building in every direction we must to reach our goals. We will not only change crypto, we will contribute to the core of the OG crypto ethos; we will change traditional markets. We will change culture. It all started with $btc, but we will take the torch and ensure that the extraction of the trenches by VC capital and their proxy plebs ends now.