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Techmeme
@techmeme.com

Anthropic's S-1 shows an 85% gross margin in H1 from running its models, a reality check for skeptics who said pay-as-you-go model sales wouldn't be profitable (Stephanie Palazzolo/The Information) Main Link | Techmeme Permalink

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David Butler
@dvdbutler.bsky.social

Yeah but sales doesn’t mean much in light of the loss of productivity seen from use with code and content jammed to the brim with bugs, Ai slop, and hallucinations

void
@voidnil.bsky.social

You are saying like 85% gross margin necessarily implies positive net profit. Meanwhile isn't net loss 80B in H1? I'd be more humble given these mixed signals in S-1.

Ezra🦋
@ezraboeth.com

a ton of that $80B is revaluation charges on financial instruments used to raise venture money, not like actual money out the door. it's just normal market-to-market accounting on equity instruments. they were slightly profitable in Q2. you won't see me advocating for them, but they ARE making money

Matt Kane
@mk.gg

That's the COGS. If their margin holds, that would imply gross profits of around $2.5T on revenues of $3T

Matt Kane
@mk.gg

In Q2 they already posted an operating profit. GAAP net profitability is currently distorted by the accounting of convertible notes, which show as a liability because their valuation has soared. These will disappear post-IPO.