alt Hacker NewsI am confident that Anthropic make revenue from that $20 than the electricity and server costs needed to serve that customer.
Claude Code has rate limits for a reason: I expect they are carefully designed to ensure that the average user doesn't end up losing Anthropic money, and that even extreme heavy users don't cause big enough losses for it to be a problem.
Everything I've heard makes me believe the margins on inference are quite high. The AI labs lose money because of the R&D and training costs, not because they're giving electricity and server operational costs away for free.
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I always assumed that with inference being so cheap, my subscription fees were paying for training costs, not inference.
>make revenue from that $20 than the electricity and server costs needed to serve that customer
Seems like a pretty dumb take. It’s like saying it only takes $X in electricity and raw materials to produce a widget that I sell for $Y. Since $Y is bigger than $X, I’m making money! Just ignore that I have to pay people to work the lines. Ignore that I had to pay huge amounts to build the factory. Ignore every other cost.
They can’t just fire everyone and stop training new models.
Nobody questions that Anthropic makes revenue from a $20 subscription. The opposite would be very strange.