if the unit economics are broken (strong competition from other proprietary model providers + open weight models; LLM token race to the bottom) it's not clear how high revenue growth translates to high profits. These companies are valued like monopolists, but the competitive dynamics make them more akin to tomato sauce makers. I understand that the technology is pretty amazing and can lead to significant productivity gains, but from a business perspective, the question is how much of that value Antrophic and others can capture over time.
mxschumacher|16 days ago
hinkley|17 days ago