Gary Marcus disputes the profit, citing temporary token demand.
noah smith, ignoring that Anthropic’s rumored profitable quarter is a. during peak tokenmaxxing b, before recent Chinese advanced c. in a quarter in which Elon gave them a big one time subsidy.
that’s not analysis, it’s cheerleading.
"Lack of profitability"
Many users dismissed Anthropic's reported first profit and 130% revenue surge to $10.9B as unsustainable bubble valuations resting on unrealistic growth projections.
No Digg Deeper questions have been answered for this story yet.
noah smith, ignoring that Anthropic’s rumored profitable quarter is a. during peak tokenmaxxing b. before recent Chinese advances c. in a quarter in which Elon gave them a big one-time subsidy.
that’s not analysis, it’s cheerleading.
"Lack of profitability"
noah smith, ignoring that Anthropic’s rumored profitable quarter is a. during peak tokenmaxxing b, before recent Chinese advances c. in a quarter in which Elon gave them a big one time subsidy.
that’s not analysis, it’s cheerleading.
"Lack of profitability"
Anthropic’s Q3, after the decline of tokenmaxxing, and recent advances in Chinese models, and without the one time subsidy from xAI, will probably be ___ their Q2.
asking about profit, not revenue.
sorry this was not clear.
Anthropic’s Q3, after the decline of tokenmaxxing, and recent advances in Chinese models, and without the one time subsidy from xAI, will probably be ___ their Q2.
@GaryMarcus Tech press rn:
@GaryMarcus Those a,b,c are not the causes. They are consequences of producing something extraordinary, faster, and well-received.
@Noahpinion I believe there's some pretty good data confirming the profitability coincides with artificially reduced rates for compute. Bubble case looks better than ever.
@GaryMarcus American companies aren't going to locally run Chinese open models. They all use Anthropic. They will continue to make a killing. You're actually not doing analysis.
@sakesun c alone is larger than the profit
@Noahpinion @marvinliao also we talk about every single one of those things! and there are THREE slides on methodology, including the first two content slides 😄
@Noahpinion Operating profit isn’t the same as bottom line
@GaryMarcus In terms of revenue, profit, R&D?
Better in terms of revenue. Profit / R&D who knows.
But investors only care abt product development and monetization rn.
@Noahpinion When the real price of the service hits the Users-Companies will see who was rkght. ROI has 0 chances
@Noahpinion They have enormous R&D expenses.
@dismalcode @Noahpinion It's all gambling , porn and prediction markets with AI chatbots making us all poorer and extremely miserable. I want to see the bright side to this tech and the future, genuinely but idk how we can come out of this.
@Noahpinion In fairness tho, many companies I know are pulling back on usage because costs are stratospheric.
@GaryMarcus Anthropic’s first profitable quarter defies AI skeptics!
Cisco was profitable in 1999 too.
Stock fell 88%.
🫧
@Noahpinion sure, but in (a) the quarter in which tokenmaxxing was at its peak and (b) they got a big one-time subsidy from Elon.
@GaryMarcus A bit of context goes a long way.
@Noahpinion Except that the Trump admin has basically kneecapped AI spend by banning Fable 5. I know I went from wanting to spend thousands in added extra usage to just my regular subscription when the model was banned. This will significantly hamper revenue if people can't use better models