Not to mention they will need to research how to make their models faster and cheaper to run in order to fit some margin within what people are actually willing to pay.

> R&D costs are hurting profit

That’s quite the hot take, considering it’s literally an R&D company that got to where it is by doing R&D.

It's more like once you figure out how to make a really good lamp then producing lots of lamps will be profitable. But the lamps are currently suboptimal so we'll be in the red until that time.

This is private equity 101 no?

I am having difficulty parsing this sentence ... :-)

Watch them flare out like a star… but there is lots of questions re the the return on RnD. Is it worth spending another order of magnitude for only marginal frontier gains?

[dead]

People keep overlooking the fact that costs for these providers scale along with customer acquisition. Most startups don't have that linear expense. Also, training costs are accelerating to get new models out faster. One doesn't simply "get rid of R&D" costs as a comment upstream mentioned. I can't actually imagine R&D goes down anytime soon unless you're willing to play third fiddle.

Unless these frontier providers feel some type of squeeze or constraint the Chinese are well positioned to leave the US bag holders of an NVidia bound system. And if anyone has to wonder how one provider for a critical piece of infrastructure will go, well...