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by justsid 5 days ago
Isn’t that the same bet that famously profitable companies like Uber did in the ride share market?
2 comments

It's not the exact same bet, but it rhymes.

It worked out for Uber, they are wildly profitable now after spending a decade losing money.

Also worked out as Amazon managed to outlast all the dotcom era e-commerce competitors while being unprofitable.

> It worked out for Uber, they are wildly profitable now after spending a decade losing money.

Uber have a 10% margin, which is definitely not what I'd consider wildly profitable. (Their post tax numbers look better, because of accumulated losses).

Uber is a two sided marketplace and was still famously unprofitable for at the same time.

Over 14 years, Uber burnt ~31 Billion dollars and in nearly whereas the amount invested within AI seems to be within Trillions at this point and in near future with a product which doesn't have much moat and shaky financials on profit.