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by androiddrew 39 days ago
The over investment by VC means that yeah, they are offering all of this below market rate. It's like Enron where they have to keep the scheme going, and dumping on retail investors is the only thing they can do now.

So we are going to go through a big IPO period. Everything will fall apart because VCs already extracted the growth value, and that will show up after the bag has been passed. Things will implode. What survives afterwards is what we will have.
1 comments
whimsicalism 39 days ago
When we say below market rate, what do we mean? The token economics are definitely such that they are charging more than it costs to serve these models with reasonable assumptions on param/activated size.
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androiddrew 37 days ago
No, they are still in the disrupt phase of the strategy. They have enough money to operate at a significant loss. So the play is to heavily subsidize, ingrain until a business can’t function without them. Think Jack Dorsey Thanos snap where 50% of the company is let go. Then jack up prices after a couple years.
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