Comment by quitit

2 days ago

While AI is an example, it's an extreme one - the uniqueness here is that the AI companies have very large spend commitments that exceed expected cash generation, even under presumption of no faults and very strong revenue assumptions because infrastructure costs outpace revenue by a significant margin.(1)

This differs quite a bit from a typical venture-backed or boot-strapped entity, which has a realistic pathway to profitability.