Again, read the comments, not the OP.
80% margins means they keep 80 cents on the dollar which sounds great in theory but then you have to add in what revenue they share with their distribution partners and all of their operating expenses and that 80% goes down real quick.
You cannot overlook this because they absolutely have to spend that money. And by law they have to pay their employees first before all other vendors and operating expenses.
COGS = cost of goods sold
Also see the line about stock based compensation which goes back to what I was saying yesterday about the AI researchers and why they're jumping ship now.
I said that they would only do so if they were afraid they were going to be out of a job or if the compensation they were promised (i.e stock) is not going to be worth what they were initially told it would be.
Depending on their contracts they may be able to exercise pre-IPO shares.
This now seems to be lining up with my suspicions.
You don't leave a project you signed up for in anticipation of stock-based compensation ahead of actually receiving that compensation unless something is very wrong with the compensation.
It has absolutely nothing to do with the product being alive because it isn't.
It has to do with these AI researchers wanting to continue to pay their bills and eat each day.
Even if they can't pre exercise, they are absolutely being paid to leave. No one is doing this for free and there's no such thing as a free lunch.
All those days in the boardroom and I actually learned something! 😉
Anyway this is going to be a glorious dumpster fire and I can't wait.
If you thought people were pissed over the FTX thing wait till you see this. This is going to be a spectacular rug pull.
Especially when they start getting into how much all of this hardware costs and that it has to be replaced every two to three years versus how many paying customers they have and the expected revenue, which doesn't come anywhere close to the hardware costs.
That number has continued to decline not increase, by the way.
In my response here I'm going to post the poly market thread because that one's hilarious, too.
Fintech is responding.
These are the people that understand financial statements (So do I, it was part of my job as head of finance 😉) and can tell you what this looks like before they IPO.
Pay attention to what the financial experts are saying.
What they are saying is what myself and everybody else here as cybersecurity experts are saying, which is that this is going to be a disaster.
Also Anthropic is trying to get ahead of the bad news in their financial statements which are about to become public by frontrunning these warnings couched in clever accounting trick phrases.
80% margin.😂
For context, Apple and Amazon have around 50% gross margin.
“Anthropic’s gross margins are above 80% before accounting for revenue shared with distribution partners, including Amazon, and the cost of training its models.”
Wow.