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by rrdharan 1201 days ago
> higher profitability than Google Search

Smaller and simpler I buy. Higher profitability I don't. Every serious analysis of this has suggested that ChatGPT is a loss leader, for example.

I'd similarly be very skeptical of claims that Kagi has better margins that Google Search (and I doubt even the Kagi founder would make that claim with a straight face):

https://news.ycombinator.com/item?id=30822830

1 comments

Kagi is losing money hand over fist currently, which is why they're moving towards a controversial pay as you go model.

I was the one who made the case to the founder back in 2021, likely along with several others, who didn't think providing unlimited search for a flat rate had any path to profitability.