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The whole AI world really is completely circular spending where every one loses money along the way. The only one really making any money is Nvidia.
by etempleton 5mo ago
The whole AI world really is completely circular spending where every one loses money along the way. The only one really making any money is Nvidia.
- kurthr 5mo agoExcept that they're loaning a bunch of money to their "customers" to "buy" their products. It's still really circular.
- etempleton 5mo agoThis thing is going to explode. From this I have to imagine OpenAIs numbers are also going to be much worse than people imagine / what has been shared.
- btian 5mo agoHow is SpaceX not making money? Total investment is 20-40B, rent to Anthropic for 45B over 3 years. Anthropic is also profitable now.
- etempleton 5mo agoAnthropic is not profitable and does not expect to be revenue even until 2028. They are just losing less billions per year than everyone else.
- theptip 5mo agoAs always, free cash flow and unit economics are more interesting than net profit. By which metrics Anthropic is making a lot of money.
- fooblaster 5mo agohow exactly can you assume they have unit profitability
- theptip 5mo agoPlenty of analysis on this point, the inputs are not secret. Check out Semianalysis for example. They have something like 70% margin on inference.
- fooblaster 5mo agoso speculation from a semiconductor website. that's incredibly likely to be wrong
- satvikpendem 5mo agoWe will see once Anthropic releases their S-1 too this summer.
- deleted 5mo ago[deleted]
- theptip 5mo agoI think you should do a bit of research and come back once you have fixed your knowledge gaps.
- fooblaster 5mo agowhat research? it's private and there is large incentive to lie until ipo
- JimDabell 5mo agoThey had 40% margin on inference in 2025. https://archive.is/aKFYZ https://archive.is/aKFYZ You can quibble about the exact numbers, but I think it’s fairly clear at this point that inference is profitable with decent margins. Like you say, unit economics are more interesting than the profitability of the company as a whole.
- dopa42365 5mo agoThe most honest memory cartel is reporting stupid profit numbers too! >Samsung chip profit jumps almost 50-fold; supply shortage to worsen in 2027 https://www.reuters.com/sustainability/sustainable-finance-reporting/samsung-elec-q1-profit-surges-eightfold-record-2026-04-30/ https://www.reuters.com/sustainability/sustainable-finance-r... >South Korean April exports rise 48.0% y/y as chip boom extends https://www.reuters.com/world/asia-pacific/south-korea-april-exports-rise-480-yy-chip-boom-continues-2026-05-01/ https://www.reuters.com/world/asia-pacific/south-korea-april... To the point where the big memory makers are suddenly trillion AI-dollar companies.
- bottlepalm 5mo agoThere is a lot of money coming in from industry, actually an exponentially increasing amount of money - money that would otherwise go to employees is now going to AI companies. There are more startups than you can shake a stick at that are basically creating virtual workers for xyz task and selling them to companies. All that money is funneling back to AI companies. It's a gold rush and employee salaries are the gold.
- kilroy123 5mo agoHot take: the US government should invest money into AI. This is why this is happening. China is doing it.