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> It’s a not very well kept secret in the industry I would rather say it's been a very well kept secret if it's true, which I highly doubt. It also makes absol

> It’s a not very well kept secret in the industry I would rather say it's been a very well kept secret if it's true, which I highly doubt. It also makes absolutely no sense; so far, Anthropic has taken every opportunity they had to release good numbers. Why would they keep it secret if they were wildly profitable? None of this makes any sense. The only thing that makes sense is that Anthropic isn't profitable at all, and is burning investor money to stay afloat. Else, why keep raising tens of billions and only release vague annualized numbers? Genuinely, this makes no sense at all. If you want to convince people otherwise, you need more than just "oh, it's a secret, but we all know it."

hakimg 2mo ago
Sorry but your whole argument that Anthropic must be burning cash is extremely weak and falls into the same tropes as Zitron. We can actually get a very good approximation of the gross margin Anthropic sells their models over API by estimating model sizes which is pretty easy with comparible open source models and analysis points to 80-90% margins. It also make sense for Anthropic to be profitable whilst raising large amounts of capital. This is because we're in a regime where just deploying GPU compute provides a huge upside and also demand for that compute has been relentless. Given that Anthropics best move would be to expand as fast as possible which requires raising capital as otherwise their organic growth would be far to slow.