"If we assume that its spend is comparable on AWS and Google Cloud — and it’s most-assuredly more! — that means Anthropic is spending around $3.75 billion in compute costs, or $11.25 billion a quarter, or $45 billion a year. There’s also a very compelling argument that Anthropic’s costs will increase and will eat up that profitability, to once again quote the Wall Street Journal:The company might not remain profitable for the full year as it plans spending increases due to its vast computing needs. I also have to wonder: if you’re so profitable, why not IPO? Why not take this to the public markets? Unless, of course, you’re only non-GAAP EBITDA profitable based on a two-month-long discount specifically covering the period in which you’re profitable. And, of course, when you’re not a publicly-traded company, and so you don’t actually have to publish any numbers (and no, leaking them doesn’t count), and you’re not subject to SEC oversight. I will give Dario Amodei credit: nobody does financial engineering and a press-led information war better than Anthropic. The willingness of the press to eat up incongruent numbers and the eagerness of many to jump up and find obtuse ways to explain away the obvious problems is only made possible when a company has perfected the art of manipulation and ingratiation of those who want to feel like they’re “first.”If you take this as incontrovertible proof that Anthropic is profitable, you are deliberately ignoring the blatantly obvious ways these numbers are being massaged. We’ve got its CFO saying numbers that don’t match up with these leaks or Anthropic’s own marketing materials, and the aggressive and deluded way in which many people ignore them is equal parts frustrating and depressing."https://www.wheresyoured.at/anthropics-profitability-swindle/#AI #GenerativeAI #AIBubble #Anthropic #AIHype
