this post was submitted on 18 Jun 2026
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What's their op ex though? I feel like there must be a sizable portion of that which isn't actually necessary to keep the service up.
So the the operating expense was greater than their revenue from operations by about 2, but it seems like they’re minimizing it by hiding the cost of some of the compute inside marketing and training costs. This is something that a few AI companies in China have been caught doing to make it seem like they’re doing better than they are. So they could be incinerating money at an even faster rate than they just admitted.
And in R&D
Yah, given that “training models” doesn’t stop when the model is finished and released. Like, a released model needs to be continuously tweaked to keep it up to date or to deal with problems that have occurred. Even if that’s not literally tokens used by customers, it is compute being used to provide service to customers.
And that’s just assuming that they’re not just hiding some compute costs used to service customer demand inside the R&D budget. “Oh, you see, this pool of customers are being served with an experimental version, so any compute here is actually R&D, any API fees or subscription payments made by them of course get counted towards normal revenue.”