OpenAI, a non-profit AI company that will lose anywhere from $4 billion to $5 billion this year, will at some point in the next six or so months convert into a for-profit AI company, at which point it will continue to lose money in exactly the same way. Shortly after
Ed is getting good at lobbing these darts at hype bubbles.
The thing that this writeup ignores is that the object isn’t to show short-term revenue, but to put all competitors out of business, be the last one standing, and create a monopoly. Either that or get bought out so the investors can move on to the next thing. But at $150B valuation, only MSFT or Nvidia can afford to buy them outright.
Google, Meta, and Amazon burned through cash for years, but they eventually outran all competition and then monetized the users who had nowhere else to go.
See that it’s never going to make money, go public, hand the keys over to someone else, and then try again with a wallet full of cash and a reputation for making billion dollar businesses.
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Ed is getting good at lobbing these darts at hype bubbles.
The thing that this writeup ignores is that the object isn’t to show short-term revenue, but to put all competitors out of business, be the last one standing, and create a monopoly. Either that or get bought out so the investors can move on to the next thing. But at $150B valuation, only MSFT or Nvidia can afford to buy them outright.
Google, Meta, and Amazon burned through cash for years, but they eventually outran all competition and then monetized the users who had nowhere else to go.
See that it’s never going to make money, go public, hand the keys over to someone else, and then try again with a wallet full of cash and a reputation for making billion dollar businesses.