Yes people invest in developing technology I dont know what rock youve been living under. They dont invest because investment pumps the stock that would be illegal and the market is so big theres very few who could move it. Instead they invest because the technology getting better raises the stock. I dont think anyone would claim AI hasnt gotten a ton better since the early days of chatgpt 2
As for sustainable, Inference is profitable but training costs a lot. Agentic models are driving up inference usage by 10x so its printing money they just need to own enough compute to provide the inference while training their next model. The market is growing like crazy, anthropic 30x their revenue in the last year going from 1b to 30b revenue and they expect to be profitable next year. Their latest model cost 5b to train.
The business model is fine. They’re over the hill and the tech has proven to be useful… unfortunately.
Yes people invest in developing technology I dont know what rock youve been living under. They dont invest because investment pumps the stock that would be illegal and the market is so big theres very few who could move it. Instead they invest because the technology getting better raises the stock. I dont think anyone would claim AI hasnt gotten a ton better since the early days of chatgpt 2
As for sustainable, Inference is profitable but training costs a lot. Agentic models are driving up inference usage by 10x so its printing money they just need to own enough compute to provide the inference while training their next model. The market is growing like crazy, anthropic 30x their revenue in the last year going from 1b to 30b revenue and they expect to be profitable next year. Their latest model cost 5b to train.
The business model is fine. They’re over the hill and the tech has proven to be useful… unfortunately.