What do you mean iffy? The major AI labs are gross profitable when selling access to inference. In addition, the best models have trillions of parameters and are most efficiently served on large, expensive clusters and served to many concurrent users.
They make money on each token when you look at the electricity and interconnect fees, but no, I don’t think they’ve turned a profit on their Capex, even a little bit
> The major AI labs are gross profitable when selling access to inference.
Do you have a good source for this?
That’s like saying an apartment building is “profitable” because the rent covers utilities while ignoring the real cost which is the mortgage on the capital cost of the building.
It’s funky math and a good way to quickly go bankrupt.