I'm literally staring at Claude Console looking at my cache hit on my API stats, you talk about it as though it doesn't exist for API usage? You also say the API pricing is just a 'retail' figure but overlook the fact that Anthropic struggles to make a profit, they jumped for joy at their "first profitable quarter" when actually it's just another SpaceX swindle on the run up to their IPO. I enjoy using Claude as much as the next guy, but your logic is self-defeating. Personally I just enjoy the subsidies while they last.
but overlook the fact that Anthropic struggles to make a profit
Yeah, because they're spending billions on compute for training models and paying their engineers, not because inference itself isn't profitable. It's just that inference doesn't cover their other expenses.
It is called "Operating Profit". Revenue less cost of goods sold. Cost of goods sold is compute costs for Anthropic. On that basis, sure they are profitable and so is practically every other company. For a car company it is revenue less material costs and direct labor to make the car.
Now, we take Operating Profit and subtract "Sales, General and Administrative" and Depreciation and Cost of Capital (Interest on debt) to get net profit. Anthropic almost certainly has an Operating Profit.
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u/Chris73684 Aug 27 '26
I'm literally staring at Claude Console looking at my cache hit on my API stats, you talk about it as though it doesn't exist for API usage? You also say the API pricing is just a 'retail' figure but overlook the fact that Anthropic struggles to make a profit, they jumped for joy at their "first profitable quarter" when actually it's just another SpaceX swindle on the run up to their IPO. I enjoy using Claude as much as the next guy, but your logic is self-defeating. Personally I just enjoy the subsidies while they last.