Comment by simonw
9 hours ago
The most important question is whether they make or lose money on each customer, independent of their fixed R&D costs.
If they make money on each customer they have a credible business - they could become profitable even with their existing R&D losses provided they can sign up enough new paying customers.
If they lose money on every customer - such that signing a $1m new enterprise account costs them $1.1m in server costs - then their entire "business" is a sham.
I currently believe that Anthropic make money on almost every customer, such that their business is legit.
I guess we'll have to wait for the IPO paperwork to find out if I'm right about that.
> The most important question is whether they make or lose money on each customer, independent of their fixed R&D costs.
The ZIRP era called and wants its business strategy back. Half the problem is as frontier models are released free as in free beer models with "good enough" performance pop up. Half the arguments about LLMs are "you're not holding it right", which borders on indicating that it's unable to distinguish between two sufficiently close LLMs.