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by 4rf 28 days ago
why are you listening to these idiots who have every incentive to spin the story as much as possible

FCFF = EBIT(1-t)-Reinvestment

I dont care about your gross profit - this kind of cash profit determines the value of operating assets.
1 comments
tskj 28 days ago
Well yeah obviously they have to stop reinvesting more than they make at some point to become profitable. To be clear, I think what Dario was saying was that if you consider each model training + deployment as a company, meaning all expenses and taxes, it was still profitable.

Whether he's lying is another question, but seems unlikely.

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rimliu 27 days ago
Wow, you actually think any of those AI companies are profitable? Would you be interested in some bridges?
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tskj 27 days ago
No, but if you'd actually read what I wrote, you'd see that what I said (that Dario said) was: if you consider each model as its own company, they've all been individually profitable. However, they keep re-investing that (and then some) into even bigger, more expensive models each time, causing the company to look unprofitable.

That being said, Anthropic did report being profitable this review quarter (Q2), so it's not as unreasonable as you claim.

Also Google is a pretty major AI company, and they're _insanely_ profitable.

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