hodgehog11
12 hours ago
I'm not foolish enough to say that AI is not economically viable. But these two companies specifically, OpenAI and Anthropic, just seem totally screwed. They're making great revenue, but their expenditure is unbelievably irresponsible (actually, their behaviour across the board is irresponsible). Training, testing, and marketing should not be this expensive.
I'm looking forward to the new wave of companies that will likely pick up after them, and engage in much more responsible business practices. These two have got to go.
entrope
12 hours ago
$72B of Anthropic's loss was on the paper value of financial instruments, though. Their operating loss, including non-recurring engineering/development costs, was under $9B. That's still not great, given $16B in revenue over half a year, even if that was 15x the prior-year revenue. Future infrastructure spending is the one place that they look overexposed: $600B in promised spend over the next decade, mostly not cancelable.
dragontamer
8 hours ago
Those financial instruments are the circular financing that's feeding the beast.
zero_shift
12 hours ago
I think AI is going to be like television: a hugely important technology, that you can't make much money from.
There's not enough moat and the open models just have to be good enough for people to cheap out.
password54321
12 hours ago
A lot of the costs are going to compute aka GPUs aka Nvidia. Guess who is funding AI startups so they can buy more GPUs.