> Nothing is subsidized. Subscriptions are profitable for both Anthropic and OpenAI.

Even if subscriptions are locally profitable (i. e., the cost of the subscription covers the cost of inference), they're still subsidized because they don't cover training and running the company; otherwise, these companies would be profitable.

"Nothing is subsidized" is a wild take. They might be making money on some users, perhaps even most users, but certainly not all. Also, "subsidized" doesn't just mean on compute.

That's interesting. Do you have anything to back that claim up?

"Nothing is subsidized"

So they are profitable?

I think you are mismatching accounting terms.

You can't say the 'subscriptions' are profitable without accounting for the cost of making the model that is the source of the subscription.

They are heavily subsidized by the shareholders. Investing, running at a loss, with hope of some future profitability.