Comment by Matticus_Rex
16 hours ago
> I think everyone has known that inference is profitable overall for the major providers for a while
A lot of AI haters like Ed Zitron and their readers have refused to update on this. I don't know if any of them have yet, but it'll take a year or two for the idea to fully filter out of their podcasts anyway.
Seems a bit of a disingenuous framing. Most of the arguments I see are some mix of
1. Their figures have been pretty dodgy or excluded training costs so why is it trustworthy this time?
2. API inference charged at a profitable level rather than heavily subsidised subscriptions means everyone tightens up their usage + governance Which we very much saw with the rise of openrouter et al.
Personally I think there's a lot of the bait and switch of 2 when people talk about profitability of the 10-20% of API usage for Anthropic while also wanting to lump in subsidised chat users as if they're profitable too.
I think we know if it was this clear cut then the behaviours of companies would be wildly different and more consistent with profitability.
Ed Zitron is a professional apocalypse predictor. Which is to say he's always wrong.