See gross margin.
Gross margin Revenue less its direct costs, such as inference, as a share of revenue. Gross profit is the same amount in dollars. Chapter 11.
From The AI Compute Race. Read the book
Sources that use it
- The Information, TITV, Sri Muppidi, 18 February 2026, the segment the publisher titled “Anthropic’s $6.4 Billion Cloud Payout” and hedged on its own chyron as “ANTHROPIC COULD SHARE $6.4B WITH CLOUD PARTNERS” (“Anthropic actually shares 50% of its gross profit back to Amazon for any revenue that Amazon sells to its customers”; “Gross profit meaning that any revenue minus any, for example, COGS like inference costs, et cetera”; “Google typically shares between 20 to 30% of any net revenue minus its infrastructure cost”; “And so we expect that to be similar for what they likely are sharing with Anthropic, and sorry, Anthropic sharing with Google” at 2:54–3:00, her correction of the direction inside the sentence; “20% of its total revenue”; “what we’ve revealed is that it actually goes till 2032” at 4:41, the term she had “previously understood” to last “until 2030”; “weighted more heavily towards the later years”; “Anthropic and OpenAI based on our analysis and our reporting, actually generate majority of their revenue from directly selling their business to customers” at 6:19–6:26, generate majority with no the on every witness; the $6.4 billion is a conditional ceiling for 2027 — the program’s ticker reads “Exclusive: Anthropic Could Share Up to $6.4 Billion With Amazon, Google and Microsoft in 2027” and the article attributes the figure to The Information’s analysis of Anthropic’s most optimistic forecasts for sales-and-marketing expense; the caption’s uh at 2:24, between any and revenue, at 2:48, between typically and shares, and at 6:20, between OpenAI and based, and its um at 2:52, between any and net, dropped from the quotations, read on the word-timed track on 24 September 2026, and its repeated 20 at 2:49 read as one 20 by both decoders, medium.en and large-v3 and a loudness profile the same day, three slices held in the set’s Quote audio checks folder of that day with their md5 in its manifest, generate majority with no the on the word-timed caption and on both decoders of the 24 September slice at 350 seconds; the decoders rendering Anthropic as Anthropix and Andropic at 6:19 where the caption reads the name; published under Nebius sponsorship, on a bar reading Supported by Adobe · NEBIUS through the clip, with an end card at 6:43 naming Adobe, OutSystems and Nebius as supporting partners; the sponsor sells inference capacity; the bar and card read on frames of 26 September 2026 inside the cited stretch and at the clip’s ends, the frames and their table held in the Library’s TITV sponsor bars folder). In the Sources
Related terms
From the glossary of The AI Compute Race.
How to cite this page
Dryburgh, Lee S. “Gross profit.” In The AI Compute Race. DRYBURGH. https://dryburgh.com/vol1/glossary/gross-profit (accessed 2026-11-01).
BibTeX
@misc{dryburgh-gross-profit-2026,
author = {Dryburgh, Lee S.},
title = {{Gross profit}},
howpublished = {In \emph{The AI Compute Race}, DRYBURGH},
year = {2026},
url = {https://dryburgh.com/vol1/glossary/gross-profit},
note = {Accessed 2026-11-01}
}