Deepseek is really killing it if that's their total spend
Yeah. Meta on the other hand. Ouch.
Is AI Profitable Yet?
21–30 of 229 posts
Re: Is AI Profitable Yet?
#22Deepseek is really killing it if that's their total spend
Right? Their V4 model is too good for them to be spending less than 1% of what Anthropic is.
Re: Is AI Profitable Yet?
#23Possibly profitable for New-Gen Labs (DS, Qwen, Kimi, etc) and impossibly unprofitable for the Legacy Labs (OpenAI, Anthropic)
Re: Is AI Profitable Yet?
#24For a rapidly growing new line of business, this isn't bad at all.
Unfortunately the green bars are not just EBITDA, they're before discounts.
Re: Is AI Profitable Yet?
#25To 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…
> Not listing other hardware companies is just dishinest. AI is not a crypto mining where resources are just burned.
AI is exactly like crypto mining in that Nvidia is the one who profited from both
Re: Is AI Profitable Yet?
#26Deepseek is really killing it if that's their total spend
Yeah. Meta on the other hand. Ouch.
Apparently their strategy is to dump a fuckton of money in hopes that that will make them dominate the market, just like they did with the metaverse thing. It's like a hobbyist who buys the most expensive gear on the first day of trying out a new hobby.
Re: Is AI Profitable Yet?
#27Remember the model:
1. Outspend and outlast your competition until you have market dominance. Win over and lock in your customers with sweetheart deals.
2. Enshittify and squeeze your customers to pay back your debt.
If you're using AI, you're not paying the true cost right now because we're in phase 1. Be ready for phase 2.
Re: Is AI Profitable Yet?
#28[dead]
Re: Is AI Profitable Yet?
#29It’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.
Re: Is AI Profitable Yet?
#30For a rapidly growing new line of business, this isn't bad at all.
Yeah, my first impression when I saw this was: if this is accurate, the situation is not nearly as bad as I thought. I do wonder why Nvida is included, though. If you include the company that all of the frontier models are pouring money into, of course the net (expenditure - profits) of the collective is going to be closer to zero :-)
Problem is not profitability as is. Nvidia's net of circular funding is the problem though: