> $2.08 for every $1 of compute.
replysounds pretty good. if I made 2.08 for every dollar of my spend I would make more money. Plenty of businesses operate on much much thinner margins, and thats not utility-like at all.
That $1 of compute is not taking into account R&D spending, infrastructure, etc.
replyAnd that's their only revenue stream
That’s 52% gross margin. Not much higher than the overall S&P 500. If you break it down by sector, Real Estate, Health are, Financials (and of course Tech overall) have higher gross margins at the sector level.
replyIt's damning that out of the only two companies in the world that absolutely must dogfood Anthropic's products, one of them, the investment bank behind Anthropic's IPO (Goldman Sachs), didn't find enough of a use case for to justify its continued use by most of the bank. Now LLM use is heavily restricted to specific departments and even in those departments spend must be approved. They've also repeatedly dropped the IPO target by almost half in just 4 weeks. That's WeWork levels of adjustment right there.
replyIt's almost as if they know something about the finances that the rest of us don't...