Comment by lelanthran
3 hours ago
Revenue is a meaningless measure though; what's the spend:income ratio? Excluding capital investments, what's the cost of operations?
At a very minimum, to repay the +$100b in investment within a reasonable timeframe, what's the minimum figure they have to bank post-tax each month?
Since when revenue is meaningless? It’s an indication of market acceptance. Anthropic has one of the most expensive plan, they didn’t undersell other models. Open weight models would otherwise dominate if cost is the only factor.
Also, investment is not money in the bank. They can’t withdraw $100b tomorrow. That means they don’t have to repay until after they got the investment, which is a commitment over several years.
> Since when revenue is meaningless?
When you're selling $10 Bill's for $1, then revenue is meaningless.
Because at some point, you have to turn a profit. That's why people are wondering the margins, if their revenue is 30B but expenses are 60B with current investment repayment factor in, that means massive revenue increases or massive lowering of expenses are required to make the business profitable. What's the business impact if they do?
It is meaningless when what you sell costs more than what your customer pays for it.
I could sell $100B of GPUs at 90% of their cost tomorrow and I have market acceptance.