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>You are basically describing predatory pricing I'm describing business. Period. It's incredibly rare to encounter products above a fairly small revenue leve
by linsomniac 2mo ago
>You are basically describing predatory pricing
I'm describing business. Period. It's incredibly rare to encounter products above a fairly small revenue level (niche products), that haven't come from a company that spent significant time reinvesting profits and therefore being unprofitable. Same for using outside investment.
Yes, there are companies who have burned outside investment on things that didn't pan out.
Love them or hate them, the AI companies are doing a huge amount of research. And research companies have always cost more than they've generated in revenue.
- bunderbunder 2mo agoThing is, we don’t have strong reason to believe the AI companies are just reinvesting profits. There’s a lot of credible analysis saying inference COGS also exceeds the prices they charge. In which case they’re just burning the candle at both ends.
- noduerme 2mo agohuh. I remember a time not that long ago when companies had to have a plan to actually, you know, make money in order to attract investors.
- Arodex 2mo agoBetting massively on onion futures is also "business" period air quotes, and yet it is widely accepted as a bad idea and banned. https://en.wikipedia.org/wiki/Onion_Futures_Act https://en.wikipedia.org/wiki/Onion_Futures_Act And it is just one of several "business" methods that are widely regarded as abusing the rules/manipulation and regulated or outright banned. Your AI companies are not just reinvesting profit, they are burning a fuckton of predatory investors'money to try to drive adoption, but also competitors to bankruptcy.
- unparagoned 2mo agoReinvesting doesn’t impact profits they are making. That’s not how it works