5B run rate explains the wild 183B valuation better. The calculus is usually a solid return after 3 years and double or better by 5, so they're being on something like a 500B valuation by 2030.
And they very likely won't be profitable in the real sense even then.
The $5B run rate, as I understand it, is smoke and mirrors. Each dollar they make costs them much more than that dollar. Sell it at a loss, but make it up on volume!
Something something efficiency
The models are only getting more expensive to train and run as they increase in complexity.
At least I can enjoy stupid corporate leaders lapping up the dogfood they're told to eat, except for the pain workers and real people suffer as a result of this yheft, trash and grift.
This is just the cost of doing business for Anthropic.
No particular material harm to the business. Declare the matter settled, everything is fine and dandy, and now they have carte blanche to rape and pillage the next village dataset.
35 Comments
moody@lemmings.world · 83 pts · 359d
So... how long does it take before a company stops being called a startup?
scintilla@crust.piefed.social · 43 pts · 359d
Probably once they can stand on their own merits and make a profit. So never in the case of AI companies.
LadyMeow@lemmy.blahaj.zone · 17 pts · 359d
Lmao, right. 1.5 Billy just laying around? Probably not much of a startup anymore…
HertzDentalBar@lemmy.blahaj.zone · 4 pts · 357d
Once it starts actually generating profits id assume. Or in most cases once it gets bought out.
balder1991@lemmy.world · 2 pts · 357d
Yeah, the definition is (or at least used to be) that a startup doesn’t have a business model yet.
dwemthy@lemmy.world · 4 pts · 359d
When they're weaned from the teat of round after round of investment
reddig33@lemmy.world · 61 pts · 359d
Where are they getting $1.5 billion from? Is this business actually profitable?
Hackworth@sh.itjust.works · 28 pts · 359d
Botzo@lemmy.world · 47 pts · 359d
Absolutely astounding that they can raise $13B on a sixth round of funding on that.
For the less finance jargon savvy, "run-rate revenue" just means projected annual revenue.
All this means they spent 3 years of revenue to make this go away.
Absolutely not a profitable business lol.
Hackworth@sh.itjust.works · 6 pts · 359d
yes_this_time@lemmy.world · 4 pts · 358d
500 million was specific to Claude Code, they are at 5 billion annual run rate and growing
Botzo@lemmy.world · 2 pts · 358d
I see. That definitely makes 13B way more sane.
baggachipz@sh.itjust.works · 3 pts · 358d
They’ve raised $32 billion total. Does it still sound sane?
Botzo@lemmy.world · 2 pts · 358d
5B run rate explains the wild 183B valuation better. The calculus is usually a solid return after 3 years and double or better by 5, so they're being on something like a 500B valuation by 2030.
And they very likely won't be profitable in the real sense even then.
baggachipz@sh.itjust.works · 3 pts · 357d
The $5B run rate, as I understand it, is smoke and mirrors. Each dollar they make costs them much more than that dollar. Sell it at a loss, but make it up on volume!
Something something efficiency
The models are only getting more expensive to train and run as they increase in complexity.
reddig33@lemmy.world · 11 pts · 359d
Yikes.
prole@lemmy.blahaj.zone · 3 pts · 358d
Does this imply that it's the sixth round?
Goddamn.
Alphane_Moon@lemmy.world · 11 pts · 359d
Monopoly money using image generation ML tech for the design. Special partnership with HP for printing these notes.
dinckelman@lemmy.world · 8 pts · 359d
pdxfed@lemmy.world · 2 pts · 358d
At least I can enjoy stupid corporate leaders lapping up the dogfood they're told to eat, except for the pain workers and real people suffer as a result of this yheft, trash and grift.
panda_abyss@lemmy.ca · 6 pts · 359d
They just did a fundraising round and raised like $13b
reddig33@lemmy.world · 4 pts · 359d
panda_abyss@lemmy.ca · 8 pts · 359d
If I could pirate a bunch of content then pay back only 10% of the value while pocketing the rest I’d be thrilled
dgriffith@aussie.zone · 2 pts · 359d
This is just the cost of doing business for Anthropic.
No particular material harm to the business. Declare the matter settled, everything is fine and dandy, and now they have carte blanche to rape and pillage the next
villagedataset.Bakkoda@sh.itjust.works · 3 pts · 358d
Haha what a funny way to say massive fraud and money laundering
aramis87@fedia.io · 34 pts · 359d
Is any of that money actually going to the authors, or is this just like a fine they hand over and they donate some money to a charity or something?
yeahiknow3@lemmings.world · 13 pts · 359d
Don’t be silly.
reksas@sopuli.xyz · 31 pts · 358d
ah yes, a "startup" that has at least 1.5 billion
Lenggo@lemmy.world · 20 pts · 359d
Glad to see they have to pay up but what was different about this compared to the similar case that Meta won the other day?
douglasg14b@lemmy.world · 22 pts · 359d
Meta has more money and is apparently immune from consequences?
DeathsEmbrace@lemmy.world · 9 pts · 359d
No if you pay the president enough he will let you commit crimes against humanity.
douglasg14b@lemmy.world · 3 pts · 357d
I mean that's essentially the same thing I said just with more words.
Meta has money. Which makes them immune to consequences.
In this case, by way of bribes.
You didn't counter my statement. You just added to it.
Jack_Burton@lemmy.ca · 1 pts · 357d
interdimensionalmeme@lemmy.ml · 4 pts · 359d
Now that is how you build a Mote
humanoidchaos@lemmy.cif.su · 3 pts · 359d
Everyone cheering for this will see no benefit from it.
Rubes.
Blaster_M@lemmy.world · 1 pts · 359d
Next time don't download the pirate library.
Doomsider@lemmy.world · 3 pts · 358d
Next time don't get caught downloading the pirate library.
FTFY