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by Schiendelman 49 days ago
What makes you think the API based cost is the cost to Anthropic?
1 comments

Well, they're selling a non-essential commodity in a highly competitive industry with about zero lock in or customer loyalty, using the standard VC playbook of "capture the market then worry about costs". I don't see space for large margins in there, and if there are margins they're probably recent because of the IPO.
So you're assuming their subscriptions are subsidized?
Yes, heavily.