Not that I have sources to link but last I read I thought the big two providers are making enough money to profit on just inference cost, but because of the obscene spending on human talent and compute for new model training they aren’t turning a profit. If they stopped developing new models they would likely be making money though.
And they are fleecing investors for billions, so big profit in that way lol
The companies that were rasing reasonable revenue compared to their costs (e.g. Cursor) were ones that were buying inference from OpenAI and Anthropic at enterprise rates and selling it to users at retail rates, but OpenAI and Anthropic raised their rates, so that cost was passed onto consumers, who stopped paying for Cursor etc. and now they’re haemorrhaging money.
Midjourney reported a profit in 2022, and then never reported anything new.
Cursor recently made 1 month of mad profit, by first hiking the price in their product and holding the users basically hostage, and then they stopped offering their most succesful product because they couldnt afford to sell it at that price. They annualized that month, and now “make a profit”.
Basically, cursor let everyone drive a Ferrari for a hundred bucks a month. Then they said “sorry, it costs 500 a month”. And then said “actually, instead of Ferrari, here’s a Honda”. Then they subtracted the cost of the Honda from the price of the Ferrari, and called it a record profit
Not that I have sources to link but last I read I thought the big two providers are making enough money to profit on just inference cost, but because of the obscene spending on human talent and compute for new model training they aren’t turning a profit. If they stopped developing new models they would likely be making money though.
And they are fleecing investors for billions, so big profit in that way lol
The companies that were rasing reasonable revenue compared to their costs (e.g. Cursor) were ones that were buying inference from OpenAI and Anthropic at enterprise rates and selling it to users at retail rates, but OpenAI and Anthropic raised their rates, so that cost was passed onto consumers, who stopped paying for Cursor etc. and now they’re haemorrhaging money.
Midjourney reported a profit in 2022, and then never reported anything new.
Cursor recently made 1 month of mad profit, by first hiking the price in their product and holding the users basically hostage, and then they stopped offering their most succesful product because they couldnt afford to sell it at that price. They annualized that month, and now “make a profit”.
Basically, cursor let everyone drive a Ferrari for a hundred bucks a month. Then they said “sorry, it costs 500 a month”. And then said “actually, instead of Ferrari, here’s a Honda”. Then they subtracted the cost of the Honda from the price of the Ferrari, and called it a record profit
This is legal somehow