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It's fascinating how creative these large AI companies are at finding ways to burn through VC funding. Hire a team of developers/content writers/editors, tune y
by paxys 1y ago
It's fascinating how creative these large AI companies are at finding ways to burn through VC funding. Hire a team of developers/content writers/editors, tune your models, set up a blog and build an entire infrastructure to publish articles to it, market it, and then...shut it all down in a week. And this is a company burning through multiple billions of dollars every quarter just to keep the lights on.
- elzbardico 1y agoThe joys of wealth transfer from the poor and the middle class workers to the asset owning class via inflation and the Cantillion Effect [1]. 1- https://www.adamsmith.org/blog/the-cantillion-effect https://www.adamsmith.org/blog/the-cantillion-effect
- stanford_labrat 1y agoI've always thought of these VC fueled expeditions to nowhere as the opposite. Wealth transfer from the owning class to the middle class seeing as a lot of these ventures crash and burn with nothing to show for it. Except for the founders/early employees who get a modest (sometimes excessive) paycheck.
- chimeracoder 1y ago> I've always thought of these VC fueled expeditions to nowhere as the opposite. Wealth transfer from the owning class to the middle class seeing as a lot of these ventures crash and burn with nothing to show for it. That would be the case if VCs were investing their own money, but they're not. They're investing on behalf of their LPs. Who LPs are is generally an extremely closely-guarded secret, but it includes institutional investors, which means middle-class pensions and 401(k)s are wrapped up in these investments as well, just as they were tied up in the 2008 financial crisis. It's not as clean-cut as it seems.
- givemeethekeys 1y agoCan VC's get their funding from mutual funds and pension plans?
- rightbyte 1y agoI think that is the 'find bag holders' part of the plan?
- deleted 1y ago[deleted]
- hinkley 1y agoI think the chilling effect on mom and pop businesses undoes all of that. When they (we) disrupt and industry the power consolidates but in new hands. The idea is to get it away from the entrenched interests but like a good cultural revolution the second tier ends up in charge when the first tier gets beheaded.
- swyx 1y agoit's fascinating how you think being creative is an insult.
- an-honest-moose 1y agoIt's about how they're applying that creativity, not the creativity itself.
- bowsamic 1y agoWhat makes you think they think that? If someone says “finding creative ways to murder people” you think they’re saying the problem is the “creative” part?