alt Hacker NewsWe 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.
No I mean Anthropic has only claimed a profitable quarter based on xAI giving them two months of free compute, and both Anthropic and OpenAI are counting discounted revenue as actual revenue. They haven't found a way to sell inference for less than it costs them yet, and when they tried earlier this quarter their customers bailed.