this post was submitted on 05 Sep 2025
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Where are they getting $1.5 billion from? Is this business actually profitable?
$13B Series F
Absolutely astounding that they can raise $13B on a sixth round of funding on that.
For the less finance jargon savvy, "run-rate revenue" just means projected annual revenue.
All this means they spent 3 years of revenue to make this go away.
Absolutely not a profitable business lol.
500 million was specific to Claude Code, they are at 5 billion annual run rate and growing
I see. That definitely makes 13B way more sane.
They’ve raised $32 billion total. Does it still sound sane?
5B run rate explains the wild 183B valuation better. The calculus is usually a solid return after 3 years and double or better by 5, so they're being on something like a 500B valuation by 2030.
And they very likely won't be profitable in the real sense even then.
The $5B run rate, as I understand it, is smoke and mirrors. Each dollar they make costs them much more than that dollar. Sell it at a loss, but make it up on volume!
Something something efficiency
The models are only getting more expensive to train and run as they increase in complexity.
What we lose on sales we make up for in volume
Just remember that actual profit isn't important to investors. They're only here make money on the growth of the investment.
Goddamn parasites.
At the end of the day, somebody will be stuck holding the bag. They’ll probably have to IPO, so that retail investors can burn their life’s savings. That or they’ll get bailed out, in which all taxpayers get to absorb this insane pyramid scheme.