this post was submitted on 05 Sep 2025
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[–] reddig33@lemmy.world 59 points 1 week ago (4 children)

Where are they getting $1.5 billion from? Is this business actually profitable?

[–] Hackworth@sh.itjust.works 27 points 1 week ago (3 children)
[–] Botzo@lemmy.world 46 points 1 week ago* (last edited 1 week ago) (2 children)

$500 million in run-rate revenue

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.

[–] Hackworth@sh.itjust.works 6 points 1 week ago

Anthropic's news page is educational in every sense of the word.

[–] yes_this_time@lemmy.world 3 points 1 week ago (1 children)

500 million was specific to Claude Code, they are at 5 billion annual run rate and growing

[–] Botzo@lemmy.world 2 points 1 week ago (1 children)

I see. That definitely makes 13B way more sane.

[–] baggachipz@sh.itjust.works 3 points 1 week ago (1 children)

They’ve raised $32 billion total. Does it still sound sane?

[–] Botzo@lemmy.world 2 points 1 week ago (1 children)

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.

[–] baggachipz@sh.itjust.works 3 points 1 week ago (2 children)

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.

[–] silasmariner@programming.dev 1 points 1 week ago

What we lose on sales we make up for in volume

[–] Botzo@lemmy.world 1 points 1 week ago (1 children)

Just remember that actual profit isn't important to investors. They're only here make money on the growth of the investment.

Goddamn parasites.

[–] baggachipz@sh.itjust.works 3 points 1 week ago

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.

[–] prole@lemmy.blahaj.zone 3 points 1 week ago

Series F

Does this imply that it's the sixth round?

Goddamn.

[–] Alphane_Moon@lemmy.world 11 points 1 week ago

Monopoly money using image generation ML tech for the design. Special partnership with HP for printing these notes.

[–] dinckelman@lemmy.world 8 points 1 week ago (1 children)

Wouldn't doubt it for a second. They create a product they can easily gaslight all the corporate chumps into buying, and by the time they realize there's 0 roi on it, it's already too late

[–] pdxfed@lemmy.world 2 points 1 week ago

At least I can enjoy stupid corporate leaders lapping up the dogfood they're told to eat, except for the pain workers and real people suffer as a result of this yheft, trash and grift.

[–] panda_abyss@lemmy.ca 5 points 1 week ago (2 children)

They just did a fundraising round and raised like $13b

[–] Bakkoda@sh.itjust.works 2 points 1 week ago

Haha what a funny way to say massive fraud and money laundering