Anthropic's S-1 shows an 85% gross margin in H1 from running its models, a reality check for skeptics who said pay-as-you-go model sales wouldn't be profitable
THE SO WHAT
An 85% gross margin on model usage per [The Information](https://www.theinformation.com/articles/anthropics-85-margin-reality-check-skeptics) says the core API business can throw off software-like economics even under pay-as-you-go. Expect sustained price competition at the model layer and more pressure on downstream vendors to justify their take on top.
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