If Anthropic is selling a dollar for less than a dollar, they are running a business that doesn't make sense. That's what jeopardizes Claude Max, not this.
Almost all consumer services have a built-in level of breakage that make them profitable. Mobile providers certainly wouldn't be able to offer unlimited calling if everyone was actually on the phone 24x7.
Sure they would. Do you know how little bandwidth a phone call takes?
A voLTE call is like 40kbps. For every person on earth to be on the phone to another person would be 4 billion calls would be about 160tbps. Which is less than 10% of the Internet's capacity.
But if it's intended to be used by one person, it seems like breaking the contract by sublicensing it out to dozens of other people. It's like buying a netflix subscription for $15, then sublicensing it on a per-hour basis to dozens of other people.
Plenty of things are intentionally run at a loss (for years!) to gain market share and quantity of ongoing recurring users, or with expectation of ROI later on. Multiple generations of the Xbox hardware have been sold at a loss with the expectation that customers will purchase 300, 400, 500 dollars worth of games, which are very high margin, over the lifespan they own the system.
I get that. It works as long as nobody calls out the emperor for having no clothes.
It's similar to fractional banking, you gamble that people won't want their deposits all at once and pray for you're big enough for bailouts when they do.
It's still a business whose fundamentals don't make sense, you're just gambling you won't get found out.
We really don’t know what are Anthropic’s margins on inference. Most available data indicates they are quite high on the API so it’s not that obvious that subscriptions are unprofitable.
That is pretty crazy, almost like how Claude and all the other models are jeopardizing other businesses without paying for their training data and wiping their ass with robots.txt
If Anthropic is selling a dollar for less than a dollar, they are running a business that doesn't make sense. That's what jeopardizes Claude Max, not this.
Almost all consumer services have a built-in level of breakage that make them profitable. Mobile providers certainly wouldn't be able to offer unlimited calling if everyone was actually on the phone 24x7.
Sure they would. Do you know how little bandwidth a phone call takes?
A voLTE call is like 40kbps. For every person on earth to be on the phone to another person would be 4 billion calls would be about 160tbps. Which is less than 10% of the Internet's capacity.
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The over subscribed gym model!
But if it's intended to be used by one person, it seems like breaking the contract by sublicensing it out to dozens of other people. It's like buying a netflix subscription for $15, then sublicensing it on a per-hour basis to dozens of other people.
There's still per-window and weekly limits though, so it's not really like that.
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That kind of mentality never works in business.
Bear in mind that for years people shared Netflix accounts until it was cracked down technically.
You can write whatever contract you like, the problem is how to enforce it, and a greater problem is enforcing it around the world.
Plenty of things are intentionally run at a loss (for years!) to gain market share and quantity of ongoing recurring users, or with expectation of ROI later on. Multiple generations of the Xbox hardware have been sold at a loss with the expectation that customers will purchase 300, 400, 500 dollars worth of games, which are very high margin, over the lifespan they own the system.
I get that. It works as long as nobody calls out the emperor for having no clothes.
It's similar to fractional banking, you gamble that people won't want their deposits all at once and pray for you're big enough for bailouts when they do.
It's still a business whose fundamentals don't make sense, you're just gambling you won't get found out.
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In international trade, isn’t this called dumping which gets major political pushback?
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We really don’t know what are Anthropic’s margins on inference. Most available data indicates they are quite high on the API so it’s not that obvious that subscriptions are unprofitable.
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That is pretty crazy, almost like how Claude and all the other models are jeopardizing other businesses without paying for their training data and wiping their ass with robots.txt