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- Hacker News
- Is this community adjusted EBITDA?by maherbeg
- > Anthropic's gross margins are above 80% before accounting for revenue shared with distribution partners, including Amazon (AMZN.O), opens new tab, and the cost of training its model, the newspaper said.
Yes the company known for famously training 1 model
by altmanaltman - I believe that their desire to slow down AI development is just for profits.
Active competition requires constant reinvestment and does not allow them to milk their trained models long enough (except poor Haiku maybe).
by burgerboii - > before accounting for revenue shared with distribution partners, including Amazon (AMZN.O), opens new tab, and the cost of training its model, the newspaper said.
"We are profitable when we ignore our costs".
I wonder what other funny strategy they may employ to claim 80% margins.
- I imagine there are many other businesses that would be profitable if they excluded all of their largest costs from their reporting.by cdrnsf
- Yes, but --- using something they call "adjusted operating income".
This is reportedly a sort of "Enron" accounting which excludes some really big expenses like revenue sharing, the cost of model training and hardware deploymments which are kept off the corporate balance sheet using "special finance vehicles".
https://www.msn.com/en-us/technology/artificial-intelligence...
by jqpabc123 - "profitable without COGS" doesn't actually mean anything at all does it?by nemomarx
- Seeing a lot of tricks similar to how ridesharing companies tried to be "profitable" before going to IPO. Caveat: Thing have materially improved but really Uber is carried by its insane Ads margins
The idea of removing model training from your costs is a little wild tbh.
The profitability of being able to serve a query wasn't really under question (nor is the margin expected to be anything less than 80%+) I think.
by darkwizard42