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cmiles8yesterday at 5:19 PM1 replyview on HN

Fair assessment. The challenge for OpenAI and Anthropic is that they need sizeable margins to pay for the massive costs incurred. Market forces are driving things in the opposite direction and fast.

When your competition has a tiny cost base compared to yours and lacks the bonkers future capital commits you made then that’s a terrible position to be in… hence their conundrum.


Replies

hungryhobbityesterday at 6:05 PM

Even "massive costs" is an understatement: these companies have astronomically massive costs!

Take Open AI for instance: it has "zero debt" ... and $665 billion to $1.4 trillion in "long-term commitments".