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Yes, the API business is cross-subsidizing the consumer business. Back in March, I did the same analysis with greater sensitivities, and arrived at similar gro
by leecmjohnny 1y ago
Yes, the API business is cross-subsidizing the consumer business.
Back in March, I did the same analysis with greater sensitivities, and arrived at similar gross margins: >70%.
https://johnnyclee.com/i/are-frontier-labs-making-80percent-gross-margins-on-llm-tTD9fwOZmuc/ https://johnnyclee.com/i/are-frontier-labs-making-80percent-...