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Comment by czhu12 | Hacker News Reader

From first principles I think youre right, but also Anthropic is making something like 80% margins.

> From first principles I think youre right, but also Anthropic is making something like 80% margins.

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).

Their S-1 says they're not operating at a loss. If they lied in the S-1, they'll go to jail for a decade or more.

the jail bit seems exceedingly unlikely

You should probably read the S1, they showed a mostly nominal loss due to accounting rules.

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.

> Their S-1 says they're not operating at a loss.

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).

If that was true their IPO would be oversubscribed, not floundering.

If you exclude all of their costs like hardware, training, $10m/engineer salaries, dojos, CEO sex islands…

GAAP are pretty clear that those things don't count, especially the last one.

What happens when the american deepseek equivalent comes online

Those are probably gross margins, not margins.

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