Patel states top neo clouds achieve 35-40% gross margins while many others are losing money.
“And this has enabled, you know, the top in the industry companies to have gross margins of 35, 40%. And now there's a ton of Neo Clouds that are losing money.”
Patel reports Anthropic achieved over 80% margins on Opus tokens and expects full profitability including stock compensation by Q3.
“That's how profitable they're getting, and their margins on an Opus token, at least Opus 4.8 token, is north of 80 for the API price.”
Patel reports Anthropic is Q2 profitable excluding SBC, expects Q3 profitability including SBC with 80% margins on Opus tokens.
“And I think by Q3 they may even be profitable, including stock based compensation. That's how profitable they're getting, and their margins on an Opus token, at least Opus 4.8 token, is north of 80”
Patel states Anthropic is profitable excluding stock compensation in Q2 with 80% margins on Opus tokens.
“Anthropic in Q2 is profitable, their net income profitable, excluding stock based compensation. And I think by Q3 they may even be profitable, including stock based compensation.”
Patel reports Anthropic achieved profitability and positive free cash flow in April and May 2025.
“Anthropic is free cash flow positive, and they are profitable in q two. Even in April. In April, they closed April's books. They were profitable.”
Patel says AWS beat on gross margins because Bedrock was highly profitable.
“On Amazon's most recent earnings call, they talked about how AWS had a strong gross margin beat. Right? They won on gross margin because Bedrock was so profitable.”
Patel says Anthropic will turn over a billion dollars of operating profit in Q3 2025.
“Anthropic turned their first gross profit in Q2 in June. And then in Q3, they will be turning a billion dollars of operating profit, slightly over.”
Patel says OpenAI's gross margins rose from 30% to 55% overall, reaching 65% excluding free users.
“Now, total company gross margin is closer to 55%, and if you strip away the free users, they're at about 65%.”
Patel reveals Anthropic turned first profit in Q2 and will hit billion-dollar operating profit in Q3 before IPO.
“So Anthropic turned their first gross profit in Q2 in June. And then in Q3, they will be turning a billion dollars of operating profit, slightly over.”
Patel says anyone can profitably run inference by renting GB300 racks and deploying open models.
“Go download the Kimi weights. Go download VLM or SGLANG. Set it up. You know, Codecs and Fable can actually help you do this.”