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> And to be clear, OpenAI/Anthropic most definitely know this: that's why they've been aquihiring like crazy, trying to find that one team that will make the thing.

Anthropic is up to $30B annual recurring revenue. I wish I had failing business models like that.

> Token prices are significantly subsidized and anyone that does any serious work with AI can tell you this. Go use an almost-SOTA model (a big Deepseek or Qwen model) offered by many bare-metal providers and you'll see what "true" token prices should look like.

I'm not sure what think you are saying here, but if you look at the providers for both "almost-SOTA model (a big Deepseek or Qwen model)" or at the price for Claude on AWS Bedrock, Azure or on GCP you will quickly see inference is very profitable.

> Anthropic is up to $30B annual recurring revenue. I wish I had failing business models like that.

And profit? A company can have $300B annual revenue, and still be a failing business if it's making a loss.

Somewhere along the line we seem to have forgotten this basic fact. Eventually there will be no more rounds of funding to feed the fire.

Costs can always be optimized, revenue is much harder to optimize.
It is easy to get 30B when you resell something you buy for 50B