A recent YouTube video by Patrick Boyle said the same thing. They are only profitable if you ignore all the costs that make them unprofitable such as paying employees and developing A models.

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ai-x 5 hours ago | parent [-]

That's not how gross margin works.

For LLMs, marginal cost is just electricity

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staticman2 4 hours ago | parent | next [-]

I made a statement about whether Anthropic was profitable I don't understand your reply.

Assuming you meant to reply to me and not someone else are you saying under GAAP accounting standards Anthropic is a profitable business because under GAAP accounting their only expense is electricity?

(I see what happened you skimmed the conversation and didn't follow what was being discussed.)

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rhdunn 2 hours ago | parent | prev [-]

There's also things like training costs, spend on AI data centres and GPUs, R&D, sales and marketing, etc. See e.g. https://www.reuters.com/business/finance/anthropics-ipo-pros....

	▲	ai-x 2 hours ago \| parent [-]
		Those are not marginal cost or unit economics