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Anthropic Cannot IPO, No Frontier Model Startup Can
The fundamental issue is how much they are burning on inference. Not training, their bread and butter. It makes them complete uneconomical as a business. Everything AI would explode financially if people understood how much money they are burning on day to day operations.
https://www.ft.com/content/fce77ba4-6231-4920-9e99-693a6c38e7d5
https://www.wsj.com/tech/ai/big-techs-soaring-profits-have-an-ugly-underside-openais-losses-fe7e3184
- colesantiago 10mo agoyes they can. if you know what a tam expansion is then you'll know that they can.
- zerosizedweasle 10mo agoIf the cost scale with growth they can never escape
- colesantiago 10mo agonot if tokens get vastly cheaper or if they rug the public markets in time. whichever comes first.