Wonder what is going to happen when these companies can no longer subsidize their models and they have to hike up the prices.

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qwytw 4 hours ago | parent | next [-]

It's not like it's realistically possible they are directly losing money on their API inference (subscriptions are maybe less clear but I think it wouldn't be far fetched to think that depending on real usage if they are at least break even).

So they either need to significantly increase usage or actually hike prices. But the second option exposes them to the risk of by undercut by open models which are priced only slightly above marginal cost.

At some point a lot of users might start thinking that Deepseek/GLM at 10th the price or less (based on Operouter pricing, using Deepseek itself for inference is of course not an option for a lot of companies) which just good enough for most use cases.

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GaggiX 4 hours ago | parent | prev [-]

Didn't Anthropic register their first profitable quarter?

	▲	raesene9 4 hours ago \| parent \| next [-]
		I think until they produce full financial information, which will happen I expect when their S-1 is published, we won't have a good picture on Anthropics true position. There's a lot of different ways to calculate "profitable" depending on what's included or excluded...
	▲	qwytw 4 hours ago \| parent \| prev [-]
		Well it might be reasonably easy to get your non-GAAP earnings positive if you fiddle with the numbers enough.