Comment by phi0

You’re confusing two figures. Before their S-1 filing, they reported being “profitable” to their investors when excluding training and stock based comp.

In the S-1 filing Q3 was profitable even with training included, if you exclude stock based compensation.

Q2 was profitable on all operating costs (incl. hardware, employees, training, inference). They were not profitable on non operating costs though. That’s partially interest, but mostly, when their valuation goes up, they’ll have to issue more stock (absolute value) to early investors after IPO. (so, them going up in value is a loss, as the shares they’ll owe will be worth more)

Their profitability will likely crator as they start building their own data centres after the IPO, so that’s the best results they’ll have in a while.