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Sorry, I should have said "profit path", good catch! They have revenue, but their cost scales with revenue and they're losing more than they are making. See:
by Insanity 4mo ago
Sorry, I should have said "profit path", good catch!
They have revenue, but their cost scales with revenue and they're losing more than they are making.
See: https://www.wheresyoured.at/brokenomics/ https://www.wheresyoured.at/brokenomics/ for an interesting write-up on the economics of AI.
- qaq 4mo agoIf people are sure they can always short NVIDIA
- brookst 4mo agoTheir costs do not scale linearly with revenue. Inference is expensive, but it's a variable cost. Anthropic's overall costs include massive fixed costs in training, which are the same regardless of usage. It's easy to falsify the claim with a simple experiment: imagine they had no customer at all, $0 in revenue. Their costs would still be massive. If the claim were true, $0 revenue should mean $0 costs, right?