(I was confused as to why so much of the article mentioned a company called Anysphere who I had not heard of. So looked it up and it's the company name)
Anthropic in the latest fundraise announce their gross margins are around 60%. Typically in the industry now, the gross margins are reported as revenue - cost of only serving paid users (free users etc. go in either cac or r&d). The thing is, with this margin, Anthropic can serve 2.5x more tokens than say cursor without making a loss for the same price compared to cursor. This reality is likely going to hit other startups based on the same assumption too. Anthropic has not reduced its pricing in almost a year now.
This may be a hugely unpopular opinion, but I don’t think it should be legal to sell a product at a loss, except maybe in clearance situations. Like you should be able to sell a product for $100 then use $1 million investment to develop a new process, then sell for $80 with the cheaper process, but not sell for $80 while the cheaper process is being developed.
Anysphere in that article = Cursor
(I was confused as to why so much of the article mentioned a company called Anysphere who I had not heard of. So looked it up and it's the company name)
https://techfundingnews.com/meet-cursor-how-anyspheres-mit-b...
Anthropic in the latest fundraise announce their gross margins are around 60%. Typically in the industry now, the gross margins are reported as revenue - cost of only serving paid users (free users etc. go in either cac or r&d). The thing is, with this margin, Anthropic can serve 2.5x more tokens than say cursor without making a loss for the same price compared to cursor. This reality is likely going to hit other startups based on the same assumption too. Anthropic has not reduced its pricing in almost a year now.
>cost of only serving paid users (free users etc. go in either cac or r&d).
Then they should ideally be quoting margins for both Inc and exc free.
This may be a hugely unpopular opinion, but I don’t think it should be legal to sell a product at a loss, except maybe in clearance situations. Like you should be able to sell a product for $100 then use $1 million investment to develop a new process, then sell for $80 with the cheaper process, but not sell for $80 while the cheaper process is being developed.
Take a look at https://en.wikipedia.org/wiki/Dumping_(pricing_policy). I’m guessing you’re seeing some problems tackled by policies around dumping as techpineapple mentioned
In some industries you can and some you can't. Particularly if to another country.
For example China was accused of Steel Dumping.
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