3 ms·

What makes you think the API based cost is the cost to Anthropic?

• overgard 5mo ago
  Well, they're selling a non-essential commodity in a highly competitive industry with about zero lock in or customer loyalty, using the standard VC playbook of "capture the market then worry about costs". I don't see space for large margins in there, and if there are margins they're probably recent because of the IPO.
  • Schiendelman 5mo ago
    So you're assuming their subscriptions are subsidized?
    • overgard 4mo ago
      Yes, heavily.