Comment by overgard
20 hours ago
Anthropic isn't actually profitable from what I'm reading, a discount briefly pushed them into the black. This guy makes the case well: https://www.wheresyoured.at/anthropics-profitability-swindle...
I'm skeptical that their current price raise is sufficient, and I'm also skeptical that most users/businesses will accept more significant price raises that will be needed. Especially for individual users, $200 a month is already incredibly expensive, I really don't think most people are going to be willing to pay more like $1000 a month.
I think we could eventually get to a point where $1000/m+ consumption would be considered a bargain.
I currently pay ~$150/m in tokens to cover my 1099 work. If I had to pay $1000 for those same tokens each month, I would still be massively positive on my margins. I bill customers based upon # of completed features & bugs, not total time spent at the computer. Tokens would have to more than 10x in cost before I would start to have a problem on my end.
How are you billing clients when using AI? Do you pass on costs or do you multiply time saved by your hourly rate and bill that?
If you're an investor in Anthropic you probably _don't want them_ to be profitable right now. They should be spending literally 100% of their money and then some on training and compute.
this - I'm wondering why this isn't getting picked up more in the analysis? Its an accounting trick, which is not sustainable. Time will tell.