Earlier quoted context omitted.
There's growth focus and there's doing some of the largest fundraising rounds in the history of silicon valley during a time when debt is the most expensive it's been in decades and still barely keeping the lights on because your service is so unprofitable.
Interest rates are still well below their historical average right now. And yes, venture capital investing involves high risk, of which all participants are fully aware, and intentionally looking for. We're talking They absolutely might fail. But the level of pessimism here is just plain funny. How much money are you willing to bet against them ever getting profitable?
I think there's a big difference between companies like Google and Amazon that were operated unprofitably for years but did have the option to pivot in to profitability for a lot of that time. I would also consider Uber more of an outlier than the rule in terms of blitzscaling. Maybe OpenAI will be kept alive on life support for a while because there is so much in the industry riding on AI being the next big thing, but their problems are myriad and include terrible unit economics and a complete lack of moat in an environment full of bigger organizations that can pour nigh unlimited money into trying to outcompete them. Maybe it makes me a pessimist to point out basic business fundamentals in the face of unquestioning optimism.