| ▲ | rhinoceraptor 4 hours ago |
| How are Anthropic and OpenAI going to compete on price when they're both already deeply unprofitable? |
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| ▲ | brainwad 3 hours ago | parent | next [-] |
| Anthropic just announced it's on track to have its first profitable quarter: https://www.wsj.com/tech/ai/mind-blowing-growth-is-about-to-... |
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| ▲ | solidasparagus 3 hours ago | parent | prev | next [-] |
| Serving the API is profitable. They are unprofitable because of R&D (and maybe subscription costs?). If they can continue to find access to R&D capital, there is space to reduce API costs. |
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| ▲ | dns_snek 2 hours ago | parent | next [-] | | Nuclear energy is really cheap too... as long as you ignore CapEx, would you like to invest? | |
| ▲ | dominotw 3 hours ago | parent | prev [-] | | how do you have access to their financials? are you an insider? Edit: to the commenter below . It was widely reported that these companies were unprofitable 1 from last year.
I am asking question to this specefic comment because they made a very specific claim about part of plan thats profitable . something only an insider would know. 1. https://www.wsj.com/tech/ai/openai-anthropic-profitability-e... |
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| ▲ | intrasight 3 hours ago | parent | prev | next [-] |
| There is no moat until a company achieves RSI and/or AGI, and the one that does succeed in moat-making will do so by hacking into and destroying their competitor's infrastructure. Once moat is achieved, you don't have to compete on price. Of course it'll be academic because the AI will probably destroy all of us. |
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| ▲ | SpicyLemonZest 3 hours ago | parent | prev [-] |
| They may not be able to! It's pretty widely acknowledged, for example, that if there's some surprising plateau hiding around the corner they're both going to fail. But that could mean that they're overcharging for AI usage to get research money and sustainable rates are lower rather than higher. |
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| ▲ | guax 2 hours ago | parent | next [-] | | I think that for coding we're past the plateau issue. The frontier models of today are good enough and very valuable. The expensiveness in running them will eventually be solved by cheaper faster hardware. I do hope that a day will come where you can buy the nvidia spark thingy for 5k that can run the equivalent of Opus 4.6 or 4.5 locally and that would be a massive thing. | |
| ▲ | CuriouslyC 3 hours ago | parent | prev | next [-] | | The whole hidden plateau hypothesis is kinda bunk, because we're already pretty far in a plateau for general knowledge/question answering, but there are many subdomains where we can push model capabilities, and as we saturate one subdomain we can just shift to another economically valuable one. There isn't one AI intelligence S curve, there are thousands of them, and they're mostly invisible in the major benchmarks, but for someone trying to do work in that specific area of capability, the progress is transformative. | |
| ▲ | wonnage 2 hours ago | parent | prev [-] | | That’s the scenario where we’ll all be using Chinese models |
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