Welcome back to This Week in Stratechery!
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On that note, here were a few of our favorites this week.
- The Cost of AI. The key to understanding and analyzing tech has been appreciating the implications of zero marginal costs, which govern the economics of everything from chips to software to services. AI services generally fall under the same rubric — fixed costs in terms of data centers and chips matter more than marginal costs (mostly electricity) — but the worsening shortage in compute means it is opportunity costs that matter more than ever. Companies will have to make hard choices, and the biggest loser might be the serially unfocused OpenAI. — Ben Thompson
- What Is Amazon Doing with Globalstar? Earlier this week Amazon announced an $11.8 billion deal to purchase Globalstar satellites in what was billed as a move to ramp the company’s competition with Elon Musk and Starlink There may be more going on with that deal, though, and Wednesday’s Daily Update explored what Apple’s role might have been. We went deeper on all this on Friday’s episode of Sharp Tech, and I loved the segment as a window into Amazon’s motivations for satellite investments generally, and the questions surrounding this deal specifically. — Andrew Sharp
- Nico Rosberg on Racing and Investing. As a religious F1 fan I’m obligated to recommend this week’s Stratechery Interview with Nico Rosberg, a terrific conversation with a former world champion in Formula 1 and a recent entrant into the world of venture capital. Come for stories of surviving the mental grind of F1 and why Rosberg walked away at the pinnacle of his career, and stay for a study of someone who looks for an edge in everything he does, understands his advantages, and has been very strategic about leveraging them to succeed in a completely different world. You wouldn’t think a famous F1 driver has lessons that could be applicable to anyone, but I was pleasantly surprised. — AS
Stratechery Articles and Updates
- Mythos, Muse, and the Opportunity Cost of Compute — Does Aggregation Theory survive in a world of constrained compute? Yes, insomuch as controlling demand will give power over supply.
- OpenAI’s Memos, Frontier, Amazon and Anthropic — Breaking down OpenAI’s internal memo about taking on Anthropic in the enterprise.
- Amazon Buys Globalstar, Delta to Add Leo, The Apple Angle — Amazon’s Globalstar acquisition is being framed as Amazon versus SpaceX, but I think the real story is about Apple.
- An Interview with F1 Driver and Venture Capitalist Nico Rosberg About the Drive to Win —
An interview with former F1 driver and current venture capitalist Nico Rosberg about finding the mental edge and maximizing opportunities.
Sharp Text by Andrew Sharp
- What the NBA Needs Right Now Is Anyone But OKC — After a long and mediocre regular season, the NBA Playoffs bring new hope for the league and fans alike. We just need one team to lose.
Dithering with Ben Thompson and Daring Fireball’s John Gruber
Asianometry with Jon Yu
Greatest of All Talk with Andrew Sharp and Ben Golliver
- An End of Year Mailbag: Fox Feelings, Pistons Hate, Hartenstein Sliding Doors, SGA Meets His Hero, and Lots More
- 2026 Awards Picks, Early Playoff Thoughts, Play-In Previews and More
Sharp Tech with Andrew Sharp and Ben Thompson
This week’s Stratechery video is on Apple’s 50 Years of Integration.