Profitable without Capex, i.e. gross margin. Inference is included in COGS. Capex (training) is not. That's reasonable.

▲

icedchai an hour ago | parent | next [-]

Is it really capex though? New models are being constantly trained, released at least quarterly, while old ones become obsolete. Training costs vary, but never disappear.

▲

cmdli an hour ago | parent | prev | next [-]

This also includes revenue sharing with distribution partners, which should probably be in COGS.

▲

freejazz an hour ago | parent | prev [-]

Isn't training necessary for the end-product? How is it not a cost to generate the output if you can't generate the output without having done the training? Seems more like saying that a car is profitable product when you don't have to account for the steel that its made from. Seems completely disingenuous.

	▲	seizethecheese 35 minutes ago \| parent \| next [-]
		In what case is capex (for any company) not required for the end product? Are you arguing capex is disingenuos as a concept? In your car example the training is much like setting up the manufacturing line. I think the issue here is that the capex depreciates super fast since the models obsolete really fast.
	▲	icedchai an hour ago \| parent \| prev [-]
		It's an accounting trick.