Dax Raad

And obviously there's like other infrastructure, there's like operations staff, there's stuff like that.

But we have seen models that,

that we look at the sticker price of it and we know like the, because we rent GPUs at scale to run the models.

And we still use middlemen, by the way.

So we're not like going all the way down to the floor.

Even for us, there are some models, the sticker price and the cost to us, there's like an 80% margin in there.

And I think the other thing that people don't notice is prices have gone up.

It's confusing because it seems like they haven't.

But they've gone up from the point of view is we used to all use Sana as our default because Opus was too expensive.

Then they made Opus cheaper.

So that we started to use Opus as our default, but it was still way more expensive than Sonnet.

So the prices have gone up and the cost to host these models haven't changed.

So that's one aspect of it being really profitable.

And Anthropic, of course, they have an OpenAI crazy scale.

They have the biggest GPU deals that they've done.

So I wouldn't be surprised if they're looking at like 90% margin at current prices.

I don't think that's like a defensible margin long-term.

That's crazy to be able to make that much with the amount of money going through as well.

There's always negative sentiment that exists for any business that's getting hyped.

They have no incentive to correct it.