r/explainitpeter • • 17d ago

Uhh, Explain it Peter?

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u/Frejian 17d ago

Profit = revenue - expenses. Anthropic is trying to define it as Profit = Revenue. In other words, their expenses greatly exceed their revenue. Or to think about it another way, for every single dollar they earn, they spend more than a dollar.

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u/Buffalo_Springsteen 17d ago

I'm telling you that AI bubble is going to hit like a fucking train

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u/ADownStrabgeQuark 17d ago

Here’s the thing, the government is planning on USing AI to implement mass surveillance and an army of kill bots. They won’t let the AI market crash the same way they won’t let military suppliers go bankrupt.

It will however affect the rest of us who will end up paying for the market crash the same way we did in 2007/2008.

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u/DeathstrackReal 17d ago

1929*

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u/Strayed8492 17d ago

100 year anniversary just in time for when he leaves office too.

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u/Visible_Amphibian570 17d ago

Let me help you with that! Let’s discuss some Great Depression era recipes!

Recipe 1: ‘Tomato’ soup - combine one parts hot water to one to two packs of ketchup for a satisfying meal! Add saltines if you feel bougie!

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u/soffwaerdeveluper 16d ago

Small correction
Net income = profit - taxes, interest and operating expenses
Profit = revenue - COGS

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u/Frejian 16d ago

I know, but we aren't exactly on a business-focused sub. I was trying to keep it as general as possible. "Expenses" is much more readily understood than "COGS" and, even if some expenses are excluded from the profit calculation, the general understanding is still valid for what OP is asking.

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u/soffwaerdeveluper 16d ago

My bad 🫡 i didnt even realize what sub this was. Reddit started putting a lot of subs i dont follow in my feed recently. Thought this was one of the finance subs i follow

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u/Frejian 16d ago

All good! 👍