They have to at least have a plausible path to profitability. The serious investors have known for some time there isn’t one with AI.
Just because the AI companies will never be profitable long term doesn’t mean there is no reason to invest in them short term.
That’s what a speculative bubble is. Everyone believes the line will keep going up long enough for them to turn around and sell to a greater fool in the near future. And for the most part they’re right. The ultimate bag-holder ends up being the middle class worker and their auto-assigned 401k portfolio.
They have multiple plausible paths to profitability. To claims there’s none is just stupid. If they succeed or not is another question. But it’s absolutely plausible.
The product and profitability towards the average citizen of the world, is such a microscopic part of their goals. People using their product is nothing more than data to feed their model. When they’re done. Their profits are not going to come from people. It’s going to come from the US government and companies. The investments being poured into OpenAI isn’t just disappearing into a black hole, lots of it remains in the hardware and digital infrastructure required for the project.
Even if their public worth drops to 0. They will still keep being funded. Because the research is too important to let go of.
They have to at least have a plausible path to profitability. The serious investors have known for some time there isn’t one with AI. Just because the AI companies will never be profitable long term doesn’t mean there is no reason to invest in them short term. That’s what a speculative bubble is. Everyone believes the line will keep going up long enough for them to turn around and sell to a greater fool in the near future. And for the most part they’re right. The ultimate bag-holder ends up being the middle class worker and their auto-assigned 401k portfolio.
They have multiple plausible paths to profitability. To claims there’s none is just stupid. If they succeed or not is another question. But it’s absolutely plausible.
The product and profitability towards the average citizen of the world, is such a microscopic part of their goals. People using their product is nothing more than data to feed their model. When they’re done. Their profits are not going to come from people. It’s going to come from the US government and companies. The investments being poured into OpenAI isn’t just disappearing into a black hole, lots of it remains in the hardware and digital infrastructure required for the project.
Even if their public worth drops to 0. They will still keep being funded. Because the research is too important to let go of.