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> AI startups burn a huge amount of money on providing free service to drive growth. Of the pure-play companies, only OpenAI do this. Like, Anthropic are losi

> AI startups burn a huge amount of money on providing free service to drive growth. Of the pure-play companies, only OpenAI do this. Like, Anthropic are losing a bunch of money and the vast majority of their revenue comes from API usage. So, either the training costs completely dominate the inference costs (seems unlikely but maybe) or they're just not great businesses. I do think that OpenAI/Anthropic are probably hiring a lot of pre and post sales tech people to help customers use the products, and that's possibly something that they could cut in the future.

JimDabell 1y ago
> Of the pure-play companies, only OpenAI do this. Like, Anthropic are losing a bunch of money and the vast majority of their revenue comes from API usage. I’m not sure I understand you. You can use Claude for free just like you can use ChatGPT for free.
- disgruntledphd2 1y ago
  > I’m not sure I understand you. You can use Claude for free just like you can use ChatGPT for free. For basically an hour. Like, have you tried to do this? I have, and ended up subscribing pretty soon. Additionally, if you look at Anthropic's revenue the vast, vast majority comes from API (along with most of their users). This is not the case for OpenAI, hence my point.