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If you set fire to a stack of money and some folks warm themselves by it, was that creating value?
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I have the impression that if MAU by itself was sufficient, the company wouldn’t have had to file for bankruptcy.

Obviously the company failed to convert its MAU into paying users, despite the fact the token costs greatly declined over the last years.

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Why don't they just not count token costs at all (or any other cost-per-user) and only look at profits, like what Anthropic is doing to figure out if they're profitable?
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I disagree that it's reductive. If each user costs more in API tokens then your company isn't valuable. That's what everyone's been screaming from the rooftops about there being a bubble. We certainly use tons of AI at the company I work for, if we were paying full API prices then I would bet we'd be barely using it.
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There's always enterprise wheeling and dealing to keep something discounted, but enterprises are absolutely paying API prices for tokens. For AI coding a least, the issue is more about attributing tokens to a real backlog (no leeching tokens for side projects) and keeping things from running away, both of which all the major AI coding platforms offer solutions for.
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webvan and pets.com have entered the chat.
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Did pets.com really have 20 million monthly active users? What were they using it for?
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As we saw after the hero Zelenskyy took down Yandex data centers, user count seems to be vaporware in many cases.
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I'm seeing this repeated a lot, but I'm rarely seeing the evidence to back it up. Presumably you're not speaking about Yandex's search engine crawlers here, right?

In an internet full of metrics and graphs, it's odd that nobody's bringing anything to the table and is just repeating the meme. A bit bottish in itself, tbh.

If it turned out "usercount was vapourware" due to 3 Russian data centres getting btfo, I think there'd have been a global financial crisis underway as we speak.

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I don't see any connection to Character.ai, but it's pretty obvious that Twitter is 90% bots, politically leaning heavily in same direction as Twitter's owner, whose pro-Trump interests are aligned with those of Russia.

Where all all these bots being hosted? I have no idea, but it certainly would not be surprising to find many of them coming from Russia (Yandex). Twitter must at least know the IP addressees of these bot accounts, but does nothing to stop them. Perhaps they are actually run by Musk not Putin, who makes no attempt to hide his attempt to use his position to subvert American democracy.

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A drug dealer at the corner also has lots of active monthly users.
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Not 20 million he doesn't
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