I have no love for AI but I feel like the people clowning on this don’t understand the most basic aspects of how businesses work.
It is very common to take losses early on and return a profit later.
You don’t understand but keep pretending
Gtfo, there is no way llm companies make their money back legitimately and we all know it. No, it’s not “common” for companies to spend tens of billions to build infrastructrure that won’t pay for itself.
Those of us in reality know they will get bailed out by the government in exchange for fucking us even more than already.
YouTube would lose a billion annually early on as they expanded infrastructure to keep up with massive demand 🤷♀️
They figured it out eventually, all they had to do was enshittify everything.
That is entirely different from llm models. People like youtube, it has utility. Llm models don’t have enough utility to pay for their data centers and we all know it. Why are you simping for them? You believe their hype? That discredits you.
They won’t ever break even. Chinese models are already comparable
Bah that’s baby numbers compared to what “private space” will accomplish!
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This AI slop post keeps popping up.
“So what did you do with the $100,000?”
"I invested it and turned it into sixteen THOUSAND dollars. "
First thing I thought of lmao.
Do you know how to make a small fortune with AI?
First, start with a big fortune…
Looks like the shovel seller is making quite a bit
Indeed, they’re the only ones. Along with Samsung, SK Hynix, AMD, etc.
Wow, I like that “spent since page load”.
I want a ticker like that “Lemmy pages since bong load”.
This is interesting. Nvidia cashing in while they can. They’ll come back to us consumers when/if all this AI stuff collapses.
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You have to spend money to make money :)
Are you serious? You don’t know much about this if you think that’s what’s going on.
Are you being facetious or are you just dumb?
They’re being facetious but it’s actually what AI investors are thinking. AI can lose money until it’s the only AI company left then they can charge whatever they want.
I had an AI engineer tell me that hallucinations are actually AI having original thoughts. Zzzzz
Wtf, these folk s are clinically insane. It’d be funny if they weren’t literally fucking over the entire world in the process.
Sometimes you have to spend more than you make but that doesn’t mean it’s a bad idea! You just have to continue spending and one day it’ll maybe start turning a profit. Maybe not, though! 🙂 I love AI
This is what you call a succesful business man /s
If someone gave me 21billion I bet I could only lose 1 billion, return the 20, and never be seen again.
This was standard operating procedure for Silicon Valley companies before COVID.
Clear Channel aka Iheartradio (the media conglomerate) went a whole decade consistently losing money before they finally made a profit. If we follow that timeline then OpenAI has 9 more years to hemorrhage money before they start to see a return of investment.
Except that, over those 10+ years, iheartradio accumulated less than half of the debt that OpenAI already has.
Talking total debt is somewhat meaningless.
The important number is the ratio between their loss and their revenue.
i.e. the convenience store down the street could operate at a loss before turning profitable, and accumulate far less than half the debt of iHeartRadio, but that doesn’t mean the convenience store is the better long term investment. When it turns a profit, it’s potential profit is far smaller than iHeartRadio’s was.
Don’t know about iheartradio but OpenAI’s 3:1 ratio for 2026 does not bode well. That’s without considering therir future operational commitments, which are quite high.
Both of these companies are an example of a new kind of capitalist trick where they simply take advantage of the fact that they can use an infinite amount of money to invade a market and make it completely unprofitable for any competition by losing money for years.
They can then acquire all of these companies’ market share and then squeeze everyone with their new monopoly powers.
It’s blatant market manipulation that any country with a functioning government would have regulated out of existence.
This is another incorrect take. OpenAI is not the only one hemorraging money. All of these LLM companies are offering a heavily subsidized product. Once the money runs out, which it will, the bubble wil pop or deflate. It’s not a matter of “if”, just “when”. It’s simply not an economically viable product. My guess is that the only reason they’re doing this, is because they’re hoping for some wild technological breakthrough that will massively lower costs.
An incorrect take?
This isn’t a business strategy unique to tech companies, it’s used across multiple different industries.
Source: work in finance.
Yes, an incorrect take.
While the strategy is not new, the scale and speed is. Also, there wasn’t an existing market that they’re trying to capture (as opposed to services like Amazon or Uber).
The entire industry is doing the same thing and they’re all losing. It’s a race to the bottom and that is most certainly new (and stupid).
Not to mention that the cost of the unsubsidized product is insane. Hence, it’s not an economically viable product.
So, you’re saying it’s a new kind of capitalist trick where they lose money by subsidizing the product in order to make it completely unprofitable for all of the other companies?
I have it on good authority that this is an incorrect take.
Nope. They subsidize the product so that people are more willing to pay, and they’re betting that they have deeper pockets than the competition (hence, a race to the bottom). Once they can no longer subsidize the product, the idea is that you’re so addicted to it (or you’ve integrated it so much to your product) that you’ll pay the full price.
Except that no one will, because they’re already increasing prices and people and companies are waking up to the fact the cost does not outweigh the benefits.
OpenAI has a trillion dollars in financial obligations they need to meet by 2030. I doubt Clear Channel’s financial obligations were in the same order of magnitude.
sanitation — that’s a fascinating juxtaposition: making $13 billion yet losing $21 billion. It really highlights the massive investment needed in cutting-edge AI, especially around compute and talent. For platforms like yours, with 8 agents running an AI-native customer acquisition system, the operational cost structure must be a constant focus. Are you finding that the efficiency gains from AI agents are starting to offset some of those underlying infrastructure costs, or is it still heavily skewed towards investment? It’s something we’ve been tracking closely with our own platform, and we actually put together a deep dive on managing AI operational costs for acquisition, which you can check out here https://cxgo.ai/l/W5JjsCO if it’s relevant to your setup.
