But then you pay for the less outrageously subsidized rates of API instead of the a bit less incredibly generous prices of the subscription.

Its not subsidized, in fact, they probably have very healthy margins on Claude Code.

Why do you think that?

johndough an hour ago | parent | next [-]

DeepSeek had a theoretical profit margin of 545 % [1] with much inferior GPUs at 1/60th the API price.

Anthropic's Opus 4.6 is a bit bigger, but they'd have to be insanely incompetent to not make a profit on inference.

noosphr an hour ago | parent | prev [-]

Because if you don't then current valuations are a bublle propped inflated by burning a mountain of cash.

	▲	falcor84 an hour ago \| parent \| next [-]
		That's not how valuations work. A company's valuation is typically based on an NPV (net present value) calculation, which is a power series of its time-discounted future cash flows. Depending on the company's strategy, it's often rational for it to not be profitable for quite a long while, as long as it can give investors the expectation of significant profitability down the line. Having said that, I do think that there is an investment bubble in AI, but am just arguing that you're not looking at the right signal.
	▲	cies an hour ago \| parent \| prev [-]
		And that's OpenAI's biz model? :)