Comment by ekjhgkejhgk
24 days ago
Stupid Europoors, optimizing for making a good product, instead of optimizing for making as much money as possible /s
24 days ago
Stupid Europoors, optimizing for making a good product, instead of optimizing for making as much money as possible /s
big AI labs make so much money because they have a good (amazing) product
Do they even _make_ actual money? https://isaiprofitable.com/ seems to disagree.
Do they dupe VC into enormous datacentre and capacity build-out investment? Why yes, actual money going to the AI hypester pick-axe vendors (and early equity dumpers) in that sense, absolutely yes it does.
Is Big AI on track to pay that back with profit from any foreseeable and defensible business model? Different question. I sincerely doubt it.
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I bet Sam, Dario and others have a good salary and an even better stock plan
The good thing about open capital markets is the possibility to invest in the upside. The downside is who gets holding the bag when the money runs out
You were a net loss for ~18y or even more and not many people were concerned.
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Big AI labs aren't making money. They're buying revenue. Sure, the product is amazing, but it wouldn't be as amazing if offered at cost - which is exactly where "good enough" smaller and specialized models will survive.
Anthropic is selling API tokens at 80% margin.
And API is 80% of their business (subscriptions the other 20%)
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They are selling api tokens at good margins. Of course they then reinvest all of it in research for new models and for continued growth. But the api inference is profitable.