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Anthropic is also considering price cuts. What’s the plan, geniuses? Lose money but make it up in volume? You can’t afford this!

Oh is that right? You think? You think reducing your pricing while your costs stay the same might have a negative effect on Anthropic and OpenAI’s margins? That’s crazy man

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i feel like it should be called something other than "profit margin" if it's in the negative. or at least "eroding profit margins" is clearly the wrong image to use in this context. more like "sweeping them out to sea, out of sight of the shoreline of profit margins" :p

Because VC money and their patience for throwing said money into an incinerator are both infinite as Sammy Altman knows. VCs would never ask "when do we start making a return on investment?" or cut off a clearly losing bet.

"an early test of the strength of both companies' business models" their business models seem to be burn investors money like there's no tomorrow until they magically make a profit. At least the Underpants Gnomes has something substantial when they stole the underwear and made no profit.

Look here’s the idea. We’re gonna get more business but make more money on a service that was already unprofitable. Once we’re everywhere we’ll charge them what we used to charge them. Maybe even more. Now you may be wondering - how do we get around the fact they didn’t want to pay, well uh gotta go