This is the entire business model of all AI companies. It costs far more to run the datacenters and build more capacity than they could ever hope to make back at current pricing models. I'm looking forward to pricing to catch up with reality and the resulting chaos that ensues.
Kind of how DeepSeek v4 dropped their pricing? I sense a shift which will hopefully bring lower and lower cost. Then again Qwen3.6 coding has been all I've needed for my projects and I'm perfectly fine with free.
Are you paying attention? These companies are trying to get market share without being anywhere close to making a profit - they are heavily subsidized. Many hundreds of billions have already been spent and will continue to be spent until the stupid fucking investors realize they will never get their money back. I have no doubt that day is coming.
The people actually working in this space will tell you that the cost of all of this continues to crater. Anthropic is already profitable minus its intentional forward-looking investments into R&D.
Only if you count the 2 months of discounted compute Musk gave them.
Serious investors look 10 to 20 years in the future. Everyone used google and youtube in 2006, but youtube wasn't profitable til 2016. How could a business burning money by hosting video ever be profitable? Costs come down BUT THEY JUST ADDED 720p, cost comes down, BUT THEY ADDED 1080p, cost comes down, 4k! cost comes down.
IMO the data from chats alone is worth $200B to Google.
but they are trying to IPO with 2-trillion dollar valuations
Not really a comparison when the spend on YouTube was x10 smaller, and Googles core business has always been profitable beyond any hobby spending on YouTube.