alt Hacker NewsWhat shareholders, Anthropic is a money burning pit. Not to the same extent as OpenAI, but both will struggle hard to actually turn a profit some day, let alone make back the massive investments they've received.
Not that they don't bring value, I'm just not convinced they'll be able to sell their products in a sticky enough way to make up the prices they'll have to extract to make up for the absurd costs.
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baq • today at 7:47 AM
$20B ARR or so reported added in Q1 doesn’t sound particularly bad, they’ll raise effective prices some more while Claude diffuses into the economy, sounds like a money printer. The issue is they’re compute constrained on the supply side to grow faster…
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>> both will struggle hard to actually turn a profit some day, let alone make back the massive investments they've received.
I'd agree with you, except I've heard this argument before. Amazon, Google, Facebook all burned lots of cash, and folks were convinced they would fail.
On the other hand plenty burned cash and did fail. So could go either way.
I expect, once the market consolidates to 2 big engines, they'll make bonkers money. There will be winners and losers. But I can't tell you which is which yet.