> They are selling at a loss?
Definitely not. Inference is not as expensive to operate as many people seem to assume. The frontier labs are probably making a lot of money from selling tokens. It’s covering all of the R&D costs like salaries, collecting training material, and running the large training operations that costs a lot of money.
> It’s covering all of the R&D costs like salaries, collecting training material, and running the large training operations that costs a lot of money.
Are you claiming that the frontier labs like OpenAI and Anthropic are actually making a profit contrary to all the claims?
They claimed that OpenAI and Anthropic have positive gross margins. I don't think there are many credible claims saying that's not the case (at least for API usage)?