So models are already a commodity, and will remain one for years. Companies must balance capex with very long payback periods against strict austerity everywhere else.
Good news for customers, BTW.
All the more reasons for us to figure out how to keep getting open models, or we are subject to the will of the the few frontier labs.
I'm skeptical that they are operating at anything but a loss. 80% margins on a specific product (API) might still not cover the losses on the other products (Free tier, subscriptions) and their expenses (operating costs, training, research, etc).
They have a lot of cash, but very few assets and a voracious hunger for renting compute.
Don't get me wrong, they make a fantastic model, but the business success is yet to be seen.
Where did you read this? I though it was a confidential filing (but I am open to receiving links to the S-1 that was filed).