alt Hacker NewsThe internal metric that they are using is they get $2 for every $1 in inference. So, if you discount model development costs, they are selling the tokens for more than it costs them to generate a token. And this is before they start integrating their advertisment networks into the model. They see something as high as $8-11 per $1 of inference once purchasing and advertisments are incorporated.
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surgical_fire • today at 7:18 PM
> So, if you discount model development costs, they are selling the tokens for more than it costs them to generate a token.
If you discount my expenses I am actually swimming in cash too.
It is absolutely moronic to discount the value of developing the thing from the profitability of the thing. Models to depreciate with time.
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The “but ads” logic fails basic sense checks. There isn’t enough ad money to go around to make up the gaps. With the big ad players like Google, Meta, and Amazon all shutting Anthropic out of their ecosystem there’s very little evidence that Anthropic can steal away enough of that as revenue to save itself.
In the “but they’ll slow down training and so will become more profitable” thinking is in big trouble given the pace of open models. They’ll then be even less competitive with free options and so even less reason to buy from Anthropic.