If Ed is neutral or an expert, he would have had the following analysis
"What is the unit cost of serving a Token? It is the cost of electricity + amortized cost of GPU (GPUs would have been Capex, but because of their fast depreciation rate, you can claim they should be Opex). Given this cost structure, every SOTA labs (Google, Anthropic and OpenAI) are profitable and actually have high unit margins of 50-60%."
High Unit Margins and growth means, these labs can be profitable anytime they choose to
"What is the unit cost of serving a Token? It is the cost of electricity + amortized cost of GPU (GPUs would have been Capex, but because of their fast depreciation rate, you can claim they should be Opex). Given this cost structure, every SOTA labs (Google, Anthropic and OpenAI) are profitable and actually have high unit margins of 50-60%."
High Unit Margins and growth means, these labs can be profitable anytime they choose to