this post was submitted on 16 Sep 2025
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It’s crazy how much money they are losing, and that’s with most of their compute being provided by Microsoft at cost, if not for free in exchange for the use of their models in Microsoft products.
Both they and Anthropic talk about their business as if they’re a software as a service company, but most SAS doesn’t get more expensive to run the more users there are, not to mention their conversion rate of free users to payed users is abysmal. Like, it’s an unsalvageable train wreck of a business model, I don’t see ether surviving more than a year unless they radically change their business models.