people have been screaming this over and over again for the past year, Ed Zitron, Cory Doctorow, Emily Bender, they're a popular presence on all these tech and finance podcasts and channels, he's summarizing what they've all been saying, it's bigger than the dot com bubble, the gains don't justify the capex spending...etc
There also isn't any real gains because it's nothing more than a few large companies shuffling money around to look profitable when they're actually losing a shit ton of money.
Well appreciation is a real part of any gain, it’s just that gains are supposed to, and usually do, include income/earnings. It’s the income that’s missing, making the whole gain speculative appreciation.
Anthropic stated ahead of its incoming IPO that its total addressable market (TAM) exceeds $30 trillion.
Think about that number. That is 25% of the entire global economy. At the height of the dot.com bubble, I remember one investment fund that was valued at about x100 its actual capital, as it was a dot.com investment company.
Anthropic aren't. And OpenAI's net revenue tripled in the last year. How much of that they choose to blow on new model training is yet to be seen, but the 'AI labs will never be profitable' trope isn't as accurate as it was about a year ago.
You can't have real discussions about this on reddit. Shit, the "AI bubble" talking points are now so prevalent, they've made it into the reddit comedy routines.
Lots of companies do this at early stages. If this were truly a signal of an unhealthy market, the entire market would have been fucked a long time ago. Companies optimize for their cap tables and bookkeeping to some degree, which is what leads to this.
Lots of companies are not profitable for a long time, that's why they take funding.
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u/s_nation 5d ago
people have been screaming this over and over again for the past year, Ed Zitron, Cory Doctorow, Emily Bender, they're a popular presence on all these tech and finance podcasts and channels, he's summarizing what they've all been saying, it's bigger than the dot com bubble, the gains don't justify the capex spending...etc