Why do we keep talking about revenue and not profit? This feels like when Michael Scott opened a paper company and the accountant had to tell him-

“At these prices, the more paper you sell, the less money you'll make."

https://isaiprofitable.com/

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vanuatu 2 hours ago | parent | next [-]

because revenue growth is much more important at this stage, and investors are underwriting based on the first and second derivative

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smt88 2 hours ago | parent | prev [-]

We talk about revenue far later in a company’s lifecycle than we did before because high-tech, high-capex companies take a long time to become profitable.

Amazon is now the posterchild for this, but it happens in other industries like pharma a lot too. And in today’s stock market, where a fundamentally weak company like Tesla can trade at eye-watering multiples because of speculation, why worry about profitability at all? (Partly joking but that’s how people think.)

When and why we start expecting Anthropic to be profitable are great questions though.

	▲	Mistletoe 2 hours ago \| parent [-]
		Amazon has the world on lockdown though as the best place to buy stuff and get almost anything to my house in a day or so. I can use any AI model out there at ever decreasing razor thin margins and there is no moat or lock in at all. Nor do most people even need AI. I’ve certainly never and would never pay for AI anything. Anthropic is basically in the paper business, AI is a commodity at best, but maybe worse, because people actually need paper.