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AI startup Anthropic agrees to pay $1.5bn to settle book piracy lawsuit (www.theguardian.com)
submitted 1 year ago by to c/technology@lemmy.world
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[–] 58 points 1 year ago (20 children)

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

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  • [+] 27 points 1 year ago (12 children)
    [deleted]
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  • [–] 47 points 1 year ago* (9 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.

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  • [–] 4 points 1 year ago (7 children)

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

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  • [–] 2 points 1 year ago (6 children)

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

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  • [–] 3 points 1 year ago (5 children)

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

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  • [–] 2 points 1 year ago (4 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.

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  • [–] 3 points 1 year ago (3 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.

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  • [–] 1 point 1 year ago (1 child)

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

    Goddamn parasites.

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  • [–] 3 points 1 year 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.

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  • [–] 6 points 1 year ago (3 children)

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

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  • [+] 4 points 1 year ago (2 children)
    [deleted]
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  • [–] 8 points 1 year ago (1 child)

    If I could pirate a bunch of content then pay back only 10% of the value while pocketing the rest I’d be thrilled

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  • [–] 2 points 1 year ago

    This is just the cost of doing business for Anthropic.

    No particular material harm to the business. Declare the matter settled, everything is fine and dandy, and now they have carte blanche to rape and pillage the next village dataset.

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