Anthropic Cannot IPO, No Frontier Model Startup Can

1•zerosizedweasle•2mo ago

The fundamental issue is how much they are burning on inference. Not training, their bread and butter. It makes them complete uneconomical as a business. Everything AI would explode financially if people understood how much money they are burning on day to day operations.

https://www.ft.com/content/fce77ba4-6231-4920-9e99-693a6c38e7d5

https://www.wsj.com/tech/ai/big-techs-soaring-profits-have-an-ugly-underside-openais-losses-fe7e3184

Comments

colesantiago•2mo ago

yes they can.

if you know what a tam expansion is then you'll know that they can.

zerosizedweasle•2mo ago

If the cost scale with growth they can never escape

colesantiago•2mo ago

not if tokens get vastly cheaper or if they rug the public markets in time.

whichever comes first.

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