Finance bros who run wall street are all idiots, so they designed a system where no matter how stupid they are, they’re always right. If you get a bunch of finance bros in a room and give a really good sales pitch, your valuation can triple despite nothing real actually happening.
In the case of AI, even the foremost experts are uncertain about how useful AI is. Qualified people disagree and no AI based tool has really proved itself to be robust, but it is amazing at fooling people who are either dumb or willfully ignorant, so it’s like crack cocaine to anyone who works on Wall Street.
Totally normal. Just keep throwing stupid amounts of money at it so it can find a way to undercut some existing business structure by operating at a loss until that business is dead and then enshittify. Profit! /s
That’s how every single company targeting consumer market in the web started. No profit for many years. Majority because of scale of the market. Facebook started making profit after 2012 so for 8 years they were burning money figuring out where to sell their soul to. Now the scale and risk for OpenAI is way bigger, because they have not sold their users fully or we don’t know if they sold it and for exchange for what. It would be funny if they at some point alter their privacy policy and turn out to sell people’s chats to advertising agencies. They might also go bankrupt or turned out to be a scam that hires thousands of people to answer questions.
The history of the Internet and computers in general is full of investors willing to take seemingly insane chances on overvalued speculative ventures.
Private equity is so pumped full of cash that they basically have nothing better to do with it.
It shouldn’t be, but it is. 20 years ago, in the far-off year of 2005, a lot of tech companies more or less followed the same path, where it took decades for them to actually be profitable, if they were at all.
YouTube ran at a deficit for something close to 15 years. AI companies are likely following this trend, and running mostly on investment money, rather than being self-sufficient.
I don’t know about now, but Amazon ran a deficit for pretty much its entire existence. Amazon is a bit different though since it was part of an R&D strategy and they could’ve stepped off the gas at almost any point and been profitable.
That’s a long established myth. Amazon started out in 94, and became profitable in like 10 years. Most of their hardcore R&D is self-financed cause they generate just that much free cash.
Right. They spend their free cash (and sometimes more) on R&D and infrastructure, which by definition means they’re unprofitable. Profit is what’s left after expenses, so if you have nothing left, you’re unprofitable.
Tech companies were in that boat in the late 90s as well.
The dot com bust deflated it somewhat, but somehow the industry got right back to it within a couple of years.
No.
Fuck no it should never be normal. Its against true business. If there wasn’t so much money in the system then a business would have to actually run like a real business.
absolutely should. america lives in an idiocracy. a trump meme coin could be valued at 100trillion $ and thats fine. if you want feudalism with extra steps, this is exactly that. go buy some golden sneakers and maybe they’ll be worth a million some time or not.
Chat GPT= Email Grammar Check.
Gotta keep in mind, profit can always be distorted based on how much employees are getting paid.
Someone is making money. In fact, a lot of people are.
Capitalism doesn’t sell performance. It sell ‘potential’ and ‘perceived gains’.
I sell my dates on my potential wealth and potential penis size. People need to get on the capitalism grindset.
And women sell dates on their potential to do that thing that was discussed but then try to backtrack by pretending they thought it was a joke and didn’t even bring a banana.
It’s what we in the biz would refer to as a “grower”, which is in contrast to a “shower”.
If you’re gonna sell dates you better be a grower! Dates don’t just grow themselves!
“I have a great venture Idea for you Susan. What if, and hear me out, what if my penis was at least average size! I already have an investor lined up in the bedroom, you’d be crazy to pass on this opportunity”
As a major investor into Open AI future, I’d gladly exchange all my non-existing stakes for a blowjob by fugly Sam Altman. It wouldn’t turn into any profits, but for some time, he’d have something in his mouth that isn’t a lie or a sketchy promo. I believe, some on Open AI board would even pay me to keep him silent.
No.
Aka why not to have headlines in the form of a question.
AKA Betteridge’s law of headlines.
That’s because it’s just gambling.
With extra steps.
It’s a “pure play”
