Anthropic founder described it as: if each model were a company, they be hugely profitable. It looks bad since when the model you trained in 2024 is generating net positive revenue, you’re also training a more expensive model for 2025 that won’t generate revenue until then. So currently, they’re always burning more cash than they’re bringing in, under the expectation that every model will increase revenue even more. Who knows how long that lasts, but it’s working so far.

Paraphrase is from the podcast he was in with the stripe founder, cheeky pints I think