I'm curious why?

Why I don’t think it’s sustainable to run a compute-intensive business on low monthly plans? If they’re like OpenAI and Anthropic, monthly plan users can spend many times the amount of money in a month than they pay, and unlike regular lower-compute SaaS businesses, overhead increases significantly with usage. That means the more users many of these services get, the more money they lose. Some surmise OpenAI was hiding the actual cost in marketing expenses to make their business look less unprofitable. Anthropic was smart enough to focus on customers most likely to be willing to pay for API pricing, so they’re in a better position. If hugging face is primarily focused on selling monthly accounts rather than token based billing which bills more as the company’s expenses increase, its not likely to ever be sustainable without significant changes.

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calebkaiser 10 hours ago | parent | next [-]

I think maybe just click around Huggingface's site a bit? They don't run a compute-intensive business on low monthly plans. You're describing frontier labs that sell access to their enormous models with subsidized subscriptions, but that's just an entirely different company/model than Huggingface. They've been around in their current form since around 2018. They provide a GitHub like service for hosting and sharing models primarily, and they also provide infra for optimized compute (for training and inference) that you can purchase through them, but you pay as you go for the compute and they have their premium baked into the price.

Their lead advocate just posted this describing things: https://x.com/mervenoyann/status/2092924706508698025

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aseipp 19 hours ago | parent | prev [-]

Most of HF's revenue comes from their enterprise customers; you essentially get direct access to their MLEs (Slack) as well as their software stack, hence the per-seat cost and annual minimum contract price. In that sense they are not particularly "compute-heavy" in terms of what they "really" sell.

	▲	DrewADesign 18 hours ago \| parent [-]
		Ah so it sounds like they might be closer to a regular SaaS.