Anthropic tells investors it will be profitable for second straight quarter

jqpabc123

Yes, but --- using something they call "adjusted operating income". This is reportedly a sort of "Enron" accounting which excludes some really big expenses like revenue sharing, the cost of model training and hardware deploymments which are kept off the corporate balance sheet using "special finance vehicles". https://www.msn.com/en-us/technology/artificial-intelligence...

throwaway85825

GAAP or non GAAP profitable?

altmanaltman

> Anthropic's gross margins are above 80% before accounting for revenue shared with distribution partners, including Amazon (AMZN.O), opens new tab, and the cost of training its model, the newspaper said. Yes the company known for famously training 1 model

nemomarx

"profitable without COGS" doesn't actually mean anything at all does it?

darkwizard42

Seeing a lot of tricks similar to how ridesharing companies tried to be "profitable" before going to IPO. Caveat: Thing have materially improved but really Uber is carried by its insane Ads margins The idea of removing model training from your costs is a little wild tbh. The profitability of being able to serve a query wasn't really under question (nor is the margin expected to be anything less than 80%+) I think.

ChrisBland

GAPP or ACSOI? Adjusted Consolidated Segment Operating Income from the groupon days....

GiorgioG

This is Enron-level fraud. What would Ford/GM/Toyota's gross margins be without the cost of manufacturing vehicles?

cdrnsf

I imagine there are many other businesses that would be profitable if they excluded all of their largest costs from their reporting.

jimmydoe

very convoluted, number game but probably works for casual investors who just want to put money in something.

maherbeg

Is this community adjusted EBITDA?

burgerboii

I believe that their desire to slow down AI development is just for profits. Active competition requires constant reinvestment and does not allow them to milk their trained models long enough (except poor Haiku maybe).

winfredJa

surprised by 80% margin that doesn't include training cost.

dr_faustus

Pathetic! At my company, we have a 100% margin before accounting for cost!

surgical_fire

> before accounting for revenue shared with distribution partners, including Amazon (AMZN.O), opens new tab, and the cost of training its model, the newspaper said. "We are profitable when we ignore our costs". I wonder what other funny strategy they may employ to claim 80% margins.

KevinMS

Blockbuster was profitable if you only considered its Milk Duds sales.