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? :)