Comment by altmanaltman
2 hours ago
How is it a bad thing if a company goes all in on burning cash but at the time have never reported a net loss quarter since its IPO? Its their money to burn at this point who cares
2 hours ago
How is it a bad thing if a company goes all in on burning cash but at the time have never reported a net loss quarter since its IPO? Its their money to burn at this point who cares
But what you say is not entirely true. There is much to love about companies burning cash on R&D. That's how a lot of greatness happened.
But what is wrong in the meta situation is that while Meta officially projects its 2026 AI capital expenditures to be between $130 billion and $145 billion, investigative reports indicate its true future liabilities exceed $690 billion once unlisted back-end deals and lease commitments are factored in. They have used shadow accounting in many places to hide these things. As it's a publicly traded company so if that goes south it hits a lot of 401ks. So that in a nutshell is why its kinda a bad thing. But you are still kinda right in that its not an existential threat and it's not going to wipe Meta out even though those numbers could totally destroy the vast majority of public companies.