Dario has publicly claimed each model has been profitable, even accounting for its training costs; it's just that each new model is exponentially more expensive to train than the last, so the income lags and it looks like the company is losing money overall.

Now, we can't know if this is true unfortunately, but it's not directly contradicted by anything that's known publicly at least. I thought it was an interesting way to frame it and makes the whole situation look marginally less bad.

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NorwegianDude 6 hours ago | parent | next [-]

A common extreme misconception is that inference is expensive and that providers are loosing a lot of money. Inference is extremely lucrative and profitable.

	▲	drob518 3 hours ago \| parent [-]
		Inference is the phase where they make money. But the question is whether they can be profitable overall as training continues to balloon.

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4rf 3 hours ago | parent | prev [-]

why are you listening to these idiots who have every incentive to spin the story as much as possible

FCFF = EBIT(1-t)-Reinvestment

I dont care about your gross profit - this kind of cash profit determines the value of operating assets.