61–70 of 229 posts
It’s weird to me that people here suddenly seem to care about profitability for relatively early stage companies just because they’re “AI”. I know a traditional SaaS company I worked for that IPO’d years ago and still has no signs that they can be profitable (and many others like it) and nobody seems particularly concerned.
To be honest whatever author wanted to say there three categories of AI related companies: hardware manufacturers, cloud providers and purely AI companies. Only the later have something to lose if AI bubble gone by tomorrow. Everyone else will just stay with grown capacity and reuse infrastructure for whatever. Not listing other hardware companies is just dishinest. AI is not a crypto mining where resources are just…
Dark fiber, for example, had a much more compelling use case.
It’s weird to me that people here suddenly seem to care about profitability for relatively early stage companies just because they’re “AI”. I know a traditional SaaS company I worked for that IPO’d years ago and still has no signs that they can be profitable (and many others like it) and nobody seems particularly concerned.
It’s weird to me that profitability is so thoroughly dismissed by the software tech industry because of an assumption that the tech industry will always be “early stage” and “high growth.” We can look at a “success story” like Uber and it is still net negative over its entire existence. This is a business that’s in a literal monopoly/duopoly status in most markets it operates in with vastly reduced regulatory burden…
How has the sheer saturation of LLMs not resulted in profit? It has dominated the conversation, center stage, of every news outlet for like 4 years now. It is the most known-about thing currently out there.
And we haven't been able to convert that much captured attention into profitability yet? That seems... bad?
For a rapidly growing new line of business, this isn't bad at all.
Right, especially given that majority of this investment is into GPUs and data centers that are amortized over a longer period of time. This is actually very hopeful. Given how the curves look like in terms of ramping of spend, these are very healthy numbers.
Now use common accounting standard and amortize the cost. Oh it doesn't fit the narrative. Never mind then.
If OpenAI and Anthropic adopted GAAP nobody would be able to invest in them it would be so bad
AMD, Alibaba should be on there too. AMD is making good money on AI, with R&D at less than half the AI revenue. Whereas Alibaba's weird financials show it's kinda-sorta-protifable? I just wanna know how the OpenAI/Anthropic shell game works long-term. So both companies made equity deals with infrastructure providers; OpenAI on Azure, Anthropic on AWS, GCloud, and Colossus. They get a loan of compute credits and then…
https://www.cnbc.com/2026/05/20/anthropic-revenue-explosive-...
It’s weird to me that people here suddenly seem to care about profitability for relatively early stage companies just because they’re “AI”. I know a traditional SaaS company I worked for that IPO’d years ago and still has no signs that they can be profitable (and many others like it) and nobody seems particularly concerned.
These companies are spending more money than budgets of many countries enough to add 2+% to the US GDP so the amount of loss for if it comes all crashing down will be huge.
And I think we passed the threshold for crash down for AI, even if AI companies wont be that profitable. Nvidia/cloud providers will be profitable as long as there is demand for AI.