Nobody questions that Anthropic makes revenue from a $20 subscription. The opposite would be very strange.

A lot of people believe that Anthropic lose money selling tokens to customers because they are subsidizing it for growth.

	▲	Drakim 2 hours ago \| parent [-]
		But that has zero effect on revenue, it only affects profit.

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brandensilva 7 hours ago | parent | prev [-]

Yeah it's the caching that's doing the work for them though honestly. So many cached queries saving the GPUs from hard hits.

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xienze 3 hours ago | parent [-]

How is caching implemented in this scenario? I find it unlikely that two developers are going to ask the same exact question, so at a minimum some work has to be done to figure out “someone’s asked this before, fetch the response out of the cache.” But then the problem is that most questions are peppered with specific context that has to be represented in the response, so there’s really no way to cache that.

	▲	marcyb5st 3 hours ago \| parent [-]
		From my understanding (which is poor at best), the cache is about the separate parts of the input context. Once the LLM read a file the content of that file is cached (i.e. some representation that the LLM creates for that specific file, but I really have no idea how that works). So the next time you bring either directly or indirectly that file into the context the LLM doesn't have to do a full pass, but pull its understanding/representation from the cache and uses that to answer your question/perform the task.