alt Hacker NewsIf they had high margins they wouldn't be issuing senior debt with a 18.5% coupon payment (and failing to fully subscribe it), nor would they need Elon to give them two months of free compute in order to appear profitable for a single quarter.
If they had high margins they wouldn't be issuing senior debt with a 18.5% coupon payment (and failing to fully subscribe it), nor would they need Elon to give them two months of free compute in order to appear profitable for a single quarter.
We were talking specifically about inference and I don’t think there any indication that their gross margins on the API tokens (if not the personal subscriptions) are negative?
Obviously they have R&D and other fixed expenses that make the company itself highly unprofitable but that’s only semi-tangential.