Comment by leptons

6 days ago

Seems like you are keeping your head in the sand about how much the AI companies are spending vs. how much they are bringing in. These companies are following the Uber model of pricing, trying to beat the competition and drive them out of the market. Uber is very expensive now, because they have to pay for all the many billions of dollars they spent being unprofitable, trying to drive out competition. It didn't really work, Lyft is still a thing, and both of them are way more expensive now than when they first started, an order of magnitude more expensive, and it isn't just inflation, it's all the debt they incurred that needs to be paid back. I used to take Uber all the time, and now it's only if I really, really have to, because it's just too expensive.

The AI companies are doing the exact same thing - operating at massive losses (far more than Uber ever did, to an extreme extent), trying to "win" the AI arms race, playing a game of chicken with their competitors.