Re:Tech Titans Amass Multimillion-Dollar War Chests to Fight...
by adam_arthur on Friday November 28, 2025 @11:17AM
(#46079950)
Probably it's "operationally profitable" when ignoring capex, depreciation, dilution and other required expenses to stay current.
Of course that means it's unprofitable in practice/GAAP terms.
You'd have to have a pretty big margin on inference to make up for the model development costs alone.
A 30% margin on inference for a GPU that will last ~7 years will not cut it
If inference has significant profitability and you're the only game in town, you could do really well.
But without regulation, as a commodity, the margin on inference approaches zero.
None of this even speaks to recouping the R&D costs it takes to stay competitive. If they're not able to pull up the ladder, these frontier model companies could have a really bad time.