In the past year, the AI inference market has seen two massive accelerations, the 1st was Claude Code in Jan-Mar, and we're seeing the second one right now with Fable/Codex this summer (ironically as the AI trade was imploding in July). Both accelerations are clearly visible in Lab ARR (loosely tracked via press leaks and 3P est.) (slide 1/2): Since AI datacenters have 12-18mo lead times, supply could not keep pace with these sudden leaps in model capability and demand, driving inflation for anything in the AI supply chain YTD (most notably memory). This has created pricing power for clouds controlling scarce compute, which I've written about and the market is beginning to appreciate (but still underestimates), and for AI labs, which have seen rising ARR per GW of inference capacity (slide 2/2 next tweet):