> I suspect the API prices are already served at prices with profitable unit economics.
There is absolutely no evidence to support this.
We don’t know the models sizes, requirements, and optimisations, but we could take a guess using the infrastructure costs of the largest open weight alternatives that perform slightly worse.
In my opinion, it’s a profitable kind of service. They probably don’t pay the public prices for the cloud GPUs though.
> There is absolutely no evidence to support this.
Analysts like Semi-Analysis have done a lot of modeling and estimates on the topic.
But two can play this game: There is absolutely no evidence to support that API prices do not have profitable unit economics.
Mr.Truth-teller Amodei confirmed it that APIs are profitable at Anthropic.
Some basic math supports it. A GB300 NVL72 is about $6.5 million. Lets say that you need $6 million worth of cooling and another $6 million worth of electricity. At current rates, that's 720 billion tokens worth of Claude Opus 4.7. At 100,000 tokens per second, it pays for itself in about 3 months.
Obviously this is an extremely rough calculation. I can even be off by a factor of 10 and it's still a pretty good return.