That's not how gross margin works.

For LLMs, marginal cost is just electricity

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.)

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....