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lelanthrantoday at 7:59 AM1 replyview on HN

> Amazon was pretty famous for never actually posting a profit for their first ~10 years of operation

They were spending the profit from each user, not making a loss on each user.

It's a big difference.

To turn a profit all AMZN had to do was stop spending (and the consumers would not have been affected by the halting of spending).

For the AI providers, to turn a profit they have to raise the price.


Replies

mnickytoday at 12:20 PM

It’s the same here. Inference alone is profitable. It’s the R&D cost of making a new model that drives up expenses.