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Comment by fhruwbfbrb | Hacker News Reader

That is precisely what price subsidies look like. These companies are hiding the the true cost of offering these models.

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They're not subsidizing enough for CoreWeave to make money.

All the money is being funneled towards nVidia. CoreWeave touches it briefly, and sends it to Jensen. Then nVidia user some of this cash to finance AI labs or clouds again. But the biggest losers seem to be VC's, that are on the basis of this piramid and still have to see a cent in return.

Source?

Literally any microeconomics class. That's like asking for a source when someone discusses Newton's laws of motion.

How does taking a microeconomics class prove that Anthropic is subsidizing the costs?

Subsidies cause excess demand that can't be met with supply, leading to shortages. Whatever financial wizardry Anthropic is doing to give themselves an apparent operating cost that is orders of magnitude lower than any ML/AI application I've ever seen, is a different question.

Edit: And Anthropic was never a specific point of discussion until you brought it up.

Please lets not out micro anywhere near Newton's laws of motion. Micro is nowhere near that level of theoretical soundness (even with mkdern lens of Newton being incorrect).

You can use Newton for most stuff and get pretty good answers. Micro is questionable in all kinds of ways. Assumptions about actors, assumptions about responses, assumptions about how utility maps onto monetary value. It's a huge mess really.

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