AI is profitable. Gross margins are high.
replyThe only reason OpenAI and Anthropic are making a loss is due to training new models to keep up with competition - not because the industry is flawed in terms of business model.
Keeping up with competition is part of trying to stay in the frontier. If they stop training the profit disappears in a few months.
replyThe point is that the model is already immensely profitable. There is no fundamental reason why AI isn't profitable. It already is.
replyInsane competition does not last forever. When chip manufacturing first started, there were dozens of companies that had fabs that made compute chips. Nowadays, only TSMC is viable. Samsung and Intel survived because of geopolitics.
Lol that chart is hilarious when you look at Nvidia.
replyAlways sell shovels in a gold rush I guess