The AI boom has turned the standard profit margin model on its head, according to Apollo Chief Economist Torsten Slok—and it’s making the industry’s growth unsustainable.
Good article, thanks! That provides better context for how the major AI companies’ finances compare with Uber’s, but I can’t think of a better example to use for a company that operated at massive losses for many years due to being propped up by investors. If you have a better example I could use, I would be glad to do it. Otherwise, if this question comes up again in the context of AI, I’ll be sure to include a link to that article.
There isn’t a better example. This level of FOMO bullshit hasn’t happened since the Dutch went bonkers over tulips.
Chatbot labs have the worst unit economics of any companies in recent memory. They only reason they still have doors open is VC money & that is now drying up. Unlike Uber, they will never become profitable. That’s why you are seeing the push to IPO so they can loot your retirement accounts via the stock market.
This level of FOMO bullshit hasn’t happened since the Dutch went bonkers over tulips.
Haha, now that’s a great comparison! I mentioned to a co-worker a couple weeks ago that we should get ready to invest in the next bubble coming up after this one pops, probably tulip bulbs (again).
Good article, thanks! That provides better context for how the major AI companies’ finances compare with Uber’s, but I can’t think of a better example to use for a company that operated at massive losses for many years due to being propped up by investors. If you have a better example I could use, I would be glad to do it. Otherwise, if this question comes up again in the context of AI, I’ll be sure to include a link to that article.
There isn’t a better example. This level of FOMO bullshit hasn’t happened since the Dutch went bonkers over tulips.
Chatbot labs have the worst unit economics of any companies in recent memory. They only reason they still have doors open is VC money & that is now drying up. Unlike Uber, they will never become profitable. That’s why you are seeing the push to IPO so they can loot your retirement accounts via the stock market.
Haha, now that’s a great comparison! I mentioned to a co-worker a couple weeks ago that we should get ready to invest in the next bubble coming up after this one pops, probably tulip bulbs (again).
Good points, thanks.