That's not how valuations work. A company's valuation is typically based on an NPV (net present value) calculation, which is a power series of its time-discounted future cash flows. Depending on the company's strategy, it's often rational for it to not be profitable for quite a long while, as long as it can give investors the expectation of significant profitability down the line.
Having said that, I do think that there is an investment bubble in AI, but am just arguing that you're not looking at the right signal.
That's not how valuations work. A company's valuation is typically based on an NPV (net present value) calculation, which is a power series of its time-discounted future cash flows. Depending on the company's strategy, it's often rational for it to not be profitable for quite a long while, as long as it can give investors the expectation of significant profitability down the line.
Having said that, I do think that there is an investment bubble in AI, but am just arguing that you're not looking at the right signal.
And that's OpenAI's biz model? :)