Eli the Computer Guy questions the trillion-dollar valuation of AI companies because if input tokens cost 40 cents per million, the required revenue generation to justify such a valuation is immense.

A simple AI chat typically costs a few hundred tokens.

The CEO of Anthropic stated that if the company's revenue is not $1 trillion or even $800 billion, it could go bankrupt due to compute costs.

To justify their current valuations, AI companies in the US need either a trillion dollars in incremental revenue from new products or massive labor market destruction to create cost savings for clients within the next 5 years.

Eli the Computer Guy states that the math for AI company valuations does not add up, comparing it to 'two plus two equal a trillion dollars.'

Eli the Computer Guy believes that if a resource like AI tokens is basically free, people will find the least efficient ways to use them.