Comment by vanuatu
4 hours ago
that makes sense to me in a conceptual sense
however inference is very profitable and plummeting in cost for a given point on the intelligence curve, and nvidia gpus can serve different models so they are protected post-buildout
> however inference is very profitable
Is it? OpenAI and Anthropic are burning cash faster than anyone has ever shoveled cash into a furnace.
You are describing the justification that NVDA is using to explain their behavior; they see it as something of a 'bridge-loan' until the LLM business model reaches steady-state. The problem is that this explanation has been used for many bubbles, where companies mis-categorize ongoing costs as one-time expenses.
> however inference is very profitable
Is there any actual evidence of that?