alt Hacker NewsI think all numbers coming out of Anthropic are utterly meaningless until we can answer the question of "just how subsidized are those subscriptions?"
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Not at all, the subscriptions have an adjusted gross margin of approximately 85%. Very profitable! The training is a different story though. How long will the subs last if they stop training? Also, why on earth would they put on the breaks and try to be profitable when they have plenty of funds and are in the growth stage?
The subscriptions are a key part of the engine to ensure The Machine can keep improving itself by harvesting all that data and feeding it back in. Many of the enterprise contracts forbid the lab from training on their data, so the subscriptions are a form of gold.
> all numbers coming out of Anthropic are utterly meaningless until we can answer the question of "just how subsidized are those subscriptions?"
Subscriptions are a growing minority of revenue.
Doesn't their S-1 render this irrelevant? Their financials are clearly much better than we thought
Their financial statements suggest the answer, even when you take into account the cost of training the model, is now 'not at all'. They are profitable, the main questions for their valuation are 1) can they keep their margins, 2) how big can they grow?, and 3) can this growth match what they have committed to?