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> We like money, and Anthropic should stay in a position to make loads of it despite any competition. In a position to lose loads of money, maybe. Even withou
by combobyte 2mo ago
> We like money, and Anthropic should stay in a position to make loads of it despite any competition.
In a position to lose loads of money, maybe.
Even without China eating their lunch, there's zero reason to believe Anthropic will ever be profitable.
- throwaway63467 2mo agoThey might just merge with OpenAI. Right now it seems they are still working out who might come out on top but they are both burning tons of money and essentially offer the exact same product up to some minor differences, economically it makes much more sense for them to collude instead of compete for the same market. They might be colluding already for all we know. If they manage to push out foreign competitors they can probably divvy up the Western market quite profitably as their domestic competitors would have less than 20 % (?) market share together?
- combobyte 2mo agoI don't see how merging or colluding fixes their problems, though. Both companies burn cash at historic rates because inference costs a lot more than people want to pay for it. Even if they somehow manage to crowd out any competitors and fix the price of AI, that price can't be much higher than it is today or people will just decide to stop paying for it. No amount of collusion can solve the core economics problem of compute.
- bizzletk 2mo agoThey could ~halve their training costs with collusion. Instead of each paying full price to generate a SOTA model in competition, they could share the result and split the cost. This gets even simpler if they merge.
- dgellow 2mo agoOpenAI is in a way worth situation financially speaking, with a ridiculous amount of spending commitment, would be really strange to merge with it
- a34729t 2mo agoThe hammer is open weight models, and the anvil is Apple's m7 chips with higher memory bandwidth
- blitzar 2mo ago> In a position to lose loads of money, maybe. you can say you're pre-revenue and you're a potential pure play