[mrtksn]

As others said, E is for Earnings but it's kind of understandable for it to be negative and use the Revenue metric as they are spending huge amount on R&D.

IMHO the bigger risk is the "AI" ending up not doing that much after all or their R&D not paying off(which is a risk, their SORA is nowhere to be found when Chinese AI companies are having its alternative in production. Maybe OpenAI isn't that far ahead and it's the language barrier that gives that impression? I don't know I don't speak Chinese but things are happening outside of the Anglosphere).

[m3kw9]

AI not doing much is a massive underdog, galaxy massive

[wokwokwok]

> "AI" ending up not doing that much after all or *their R&D not paying off*

Emphasis added.

You spend money on R&D.

The expectation: You make money.

The AI company reality: The value of your propitiatory models drops to LITERALLY ZERO after they are superseded by a new generation of models, or worse, open inference models.

The risk isn't that the models don't work.

The risk is that it increasingly appears that the 'moat' these companies have is only as good as the amount of money they continue to pour into it. and when the moat is gone, so is the company.

I can also run a business where I create a moat by pouring money into it (remember MoviePass?), eg. literally paying people to use your service; but usually you have to have some kind plan that does not involve magical fairies (eg. AGI) in at the very least your pitch deck, to convince people you have a plan which goes from scale -> mega profit.

[m3kw9]

I would use factory automation as the analogy, it’s actually a direct analogy

[tomp]

Yeah the latest Pika model is mindblowing. Out of this world (though surprisingly creepy ad!).

https://x.com/pika_labs/status/1841143349576941863

Where's Sora?

[fastfuture]

Yeah it looks like we will have to wait a long time before getting access to sora