For the thousandth time - they. make. a. profit. Inference margin is over 60%, today.
They are spending that money training ever-larger models, so they are cashflow negative, but under almost any sane GAAP treatment that does not allow one to write down all R&D upfront (capital costs of model training), they are profitable.
Should this matter to you? Only if you're making financial decisions that assume that somehow one day the "jig will be up" - i.e. please don't short these stocks when they float, or at least do so very judiciously.
They are spending that money training ever-larger models, so they are cashflow negative, but under almost any sane GAAP treatment that does not allow one to write down all R&D upfront (capital costs of model training), they are profitable.
Should this matter to you? Only if you're making financial decisions that assume that somehow one day the "jig will be up" - i.e. please don't short these stocks when they float, or at least do so very judiciously.