alt Hacker NewsBig AI labs aren't making money. They're buying revenue. Sure, the product is amazing, but it wouldn't be as amazing if offered at cost - which is exactly where "good enough" smaller and specialized models will survive.
Replies
nok22kon • yesterday at 9:39 AM
Anthropic is selling API tokens at 80% margin.
And API is 80% of their business (subscriptions the other 20%)
➕ show 2 replies
They are selling api tokens at good margins. Of course they then reinvest all of it in research for new models and for continued growth. But the api inference is profitable.