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Anthropic raises $13B Series F

anthropic.com

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Re: Anthropic raises $13B Series F

#291
post #263

Earlier quoted context omitted.

According to Dario, each model line has generally been profitable: i.e. $200MM to train a model that makes $1B in profit over its lifetime. But, since each model has been more and more expensive to train, they keep needing to raise more money to train the next generation of model, and the company balance sheet looks negative: i.e. they spent more this year than last (since the training cost for model N+1 is higher),…

> if I give you $15B, you will probably make a lot more than $15B with it "probably" is the key word here, this feels like a ponzi scheme to me. What happens when the next model isn't a big enough jump over the last one to repay the investment? It seems like this already happened with GPT-5. They've hit a wall, so how can they be confident enough to invest ever more money into this?

I think you're really bending over backwards to make this company seem non viable.

If model training has truly turned out to be profitable at the end of each cycle, then this company is going to make money hand over fist, and investing money to out compete the competition is the right thing to do.

Most mega corps started out wildly unprofitable due to investing into the core business... until they aren't. It's almost as if people forget the days of Facebook being seen as continually unprofitable. This is how basically all huge tech companies you know today started.

Re: Anthropic raises $13B Series F

#292

The compute moat is getting absolutely insane. We're basically at the point where you need a small country's GDP just to stay in the game for one more generation of models. What gets me is that this isn't even a software moat anymore - it's literally just whoever can get their hands on enough GPUs and power infrastructure. TSMC and the power companies are the real kingmakers here. You can have all the talent in the w…

> The compute moat is getting absolutely insane. We're basically at the point where you need a small country's GDP just to stay in the game for one more generation of models. For what it is worth, $13 billion is about the GDP of Somalia (about 150th in nomimal GDP) with a population of 15 million people.

Country scale is weird because it has such a large range.

California (where Anthropic is headquartered) has over twice as many people as all of Somalia.

The state of California has a GDP of $4.1 Trillion. $13 billion is a rounding error at that scale.

Even the San Francisco Bay Area alone has around half as many people as Somalia.

Re: Anthropic raises $13B Series F

#293

The compute moat is getting absolutely insane. We're basically at the point where you need a small country's GDP just to stay in the game for one more generation of models. What gets me is that this isn't even a software moat anymore - it's literally just whoever can get their hands on enough GPUs and power infrastructure. TSMC and the power companies are the real kingmakers here. You can have all the talent in the w…

What’s the hardware capability doubling rate for GPUs in clusters? Or (since I know that’s complicated to answer for dozens of reasons): on average how many months has it been taking for the hardware cost of training the previous generation of models to halve, excluding algorithmic improvements?

Re: Anthropic raises $13B Series F

#294
post #72

Substitute fiber and routers for GPUs and this starts to look familiar.

Really good analogy: Bay Networks, Lucent, Nortel, and Cisco got beat up or destroyed on the equipment side. And then the long haul fiber companies never got ROI (but paved the way for broadband).

Re: Anthropic raises $13B Series F

#295

Earlier quoted context omitted.

In a centrally banked economy, retail and commercial banks create money when you take out loans. The government doesn't create money except during QE which only happened twice in the US, 2009-2014 and 2020-2021. That's why I was curious what you meant by "they." The Fed has been actively destroying money for the last 4 years.

The amount of money banks create is determined by the appetite for credit which is determined by the interest rate. The fed has not been actively destroying money, they are at most slowing the rate of the increase of money.

They influence creation of money by adjusting the short-term interest rate which influences the demand for borrowing at commercial and retail banks. It's not that direct or straight-forward though, because they only have control over the short end of the yield curve not the long end. The long end of the yield curve has interest rates defined mostly by inflation expectations. If they dropped rates to 0% overnight it probably wouldn't move the 30Y yield all that much -- it might even raise it because of the expectation lower short-end yields would raise inflation.

The Fed doesn't have nearly as much control as folks think.

The Fed directly created money during QE and they are directly destroying it during QT. There's a net add, but that's mostly because the economy is growing, which creates new demand for money as expressed by demand for debt.

The money supply staying fixed or shrinking is a non-goal anyways. It's irrelevant. What matters is inflation as measured from the change in actual prices.

Re: Anthropic raises $13B Series F

#296
post #208

Earlier quoted context omitted.

> Anecdotally moving from model to model I'm not seeing huge changes in many use cases. Probably because you're doing things that are hitting mostly the "well-established" behaviors of these models — the ones that have been stable for at least a full model-generation now, that the AI bigcorps are currently happy keeping stable (since they achieved 100% on some previous benchmark for those behaviors, and changing them…

>Mostly this is inside-baseball stuff to "make the model better as a tool for enhancing the model" Last week I put GPT-5 and Gemini 2.5 in a conversation with each other about a topic of GPT-5's choosing. What did it pick? Improving LLMs. The conversation was far over my head, but the two seemed to be readily able to get deep into the weeds on it. I took it as a pretty strong signal that they have an extensive traini…

Like trying to have a lunch conversation with coworkers about anything other than work

Re: Anthropic raises $13B Series F

#297

Earlier quoted context omitted.

And we're still sort of on the fence if it's even that useful? Like sure it saves me a bit of time here and there but will scaling up really solve the reliability issues that is the real bottleneck.

Assuming the best case: we're going to need to turn this productivity into houses or lifestyle improvement, soon... or I'm just going out with Sasquatch

While decoding your comment I'm going to assume Sasquatch to be a semi-underground (no web site, only calls) un-startup that specializes in survival kits for people leaving civilization behind. Like calling the vacuum repair store but more hippie themed.

Re: Anthropic raises $13B Series F

#298
Everyone is so pessimistic about bubble bursting and money are simply catches on fire in this AI race…

However, I remembered when Youtube was young. It was burning money every month on bandwidth.

After selling out to Google, it took another decade to turned profit. But it did. And it achieved its end game. As the winner, it took all of the video hosting market. And Google reaped the entirety of that win.

This AI race is playing out the same way. The winner has the ability to disrupt several FAANGs and FAANG neighbors (eg. Adobe). And that’s 1-2 trillion dollar market, combined.

Re: Anthropic raises $13B Series F

#299
post #225
post #124

Earlier quoted context omitted.

You can't run Claude on your PC; you need servers. Companies that have that kind of hardware are not going to touch a pirated model. And the next model will be out in a few months anyway.

If it was worth it, you'd see some easy self hostable package, no? And by definition, its profitable to self host or these AI companies are in trouble.

Does your "self hostable package" come with its own electric substation?

Re: Anthropic raises $13B Series F

#300

Earlier quoted context omitted.

alphabet is "worth" 2.45 trillion on the public market, is anthropic worth a bit less than 10% of google going forward? I don't think that's entirely unreasonable...

It's both insane and not unreasonable. If Anthropic's internal version of Claude Code gets so good that they can recreate all of google's products quickly there's no moat anymore. If AI is winner take all, then the value is effectively infinite. Obviously insane, but maybe it's winner take most?

Is there no moat for previous account and user buy-in?

Convincing billions of users to make a new account and do all their e-mail on a new domain? A new YouTube channel with all new subscribers? Migrate all their google drive and AdSense accounts to another company, etc?

This is trivially simple and creates no moat?

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