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by eukara 31 days ago
tell me more about how all this revenue makes up for their lack of profit. economics 101.
2 comments

Whether or not they are making a profit yet is a different question from whether they sell. The amount of revenue and growth clearly shows they sell. It remains to be seen if they end up like airlines - an industry providing enormous value, with the airlines themselves capturing only a fraction of that value.
We're talking about revenue not profit.

"AI doesn't sell" is nonsense. That's revenue.

inflating the numbers on revenue is pretty easy. it's why the phrase 'revenue is vanity, profit is sanity' exists. these companies have already done it (cloud partner billings), are still doing it. how much of that is consumer spending? presumably very little, it's why they want to integrate into _existing services_ (like healthcare apps) with already existing users. it can't stand on its own. case in point: Sora

> After a splashy launch, Sora’s worldwide user count peaked at around a million and then collapsed to fewer than 500,000. Meanwhile, the app was burning through roughly $1 million every day — not because people loved it but because video generation is so costly to run.