Comment by antonyt

12 hours ago

By investors. OpenAI and Anthropic are not profitable (Anthropic is profitable if you allow them to invent what profitability means).

12 comments

antonyt

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oblio  12 hours ago

I heard someone calling the key metric in Anthropic financial reports EBBT: Earnings Before Bad Things[1] :-)

[1] Where "Bad Things" would be the typical interest, taxes, depreciation, amortisation plus the Anthropic specific employee compensation, LLM training (you know, for the LLM lab), revenue sharing agreements (which is a form of paying for infrastructure), etc.

  • staticman2  12 hours ago

    A recent YouTube video by Patrick Boyle said the same thing. They are only profitable if you ignore all the costs that make them unprofitable such as paying employees and developing A models.

Bud  12 hours ago

Investment is not a subsidy. Words still have meanings. Nobody in this thread has successfully answered the question: subsidized by whom?

Non-punishment is also not a subsidy; again, words have meanings. Let's use the correct words.

  • rfrey  10 hours ago

    Indirect subsidies are an accepted economic concept and well studied. The posts you replied to are obviously talking about indirect subsidies and dismissing them because they didn't say "indirect" everywhere is just sophism.