The AI Industry Is Losing(wheresyoured.at) |
The AI Industry Is Losing(wheresyoured.at) |
You can.
1. Borrow 10x your annual income.
2. Spend 3x your monthly income, every month.
To me, this looks more like an iterative technology cycle. The frontier labs continue to improve the models, while the agents, tooling, infrastructure, and applications is evolving rapidly. So, as long as the feedback loop between model improvements and real-world adoption continues, short-term losses don't necessarily tell us much about the long-term trajectory.
The author never states what would constitute winning
The author is pretty obvious and exhaustive about what he means by "losing": AI capex bubble is unsustainable, AI revenue is circular, no meaningful AI compute demand outside of OpenAI and Anthropic, AI products are mediocre at best (and still heavily subsidized, at that), AI is causing various mental health crises, OpenAI lost $20.9 billion on $13 billion in revenue in 2025.
OpenAI spent $17.2 billion on Azure in 2025 making the infrastructure bill exceed total revenue by about $4 billion BEFORE even counting salaries, research, stock compensation or anything else.
I feel like the responses here are purposely obtuse and people are refusing to realistically evaluate the economics of Anthropic and OpenAI
So then it’s just profitability modulo “various mental health crises”
Turning a profit? What else could a business lose at?
Continue shoving your fingers in your ears and closing your eyes to the absolute nonsense that is behind OpenAI and Anthropic's economics, it won't change the fact that their path to profitability doesn't exist.
Is the person defending Anthropic in the room with us?
No seriously, I recently heart someone say that and it may even be correct. However I assume this only to be correct if a stop in training doesn't change the current revenue environment - which it absolutely would. I am still convinced a lot of demand for tokens is artificial in the sense that people buy tokens because thats what you do right now (and its convenient) not because the roi is so great.