this post was submitted on 10 Aug 2025
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The usual business plan is to reinvest all earnings into growth. So you're losing money, but gaining market share. Tesla, Amazon, etc all did this. They could stop at any point and turn a profit, but they chose to pursue a growth instead.
AI companies are currently not making enough revenue to even cover their operating costs. Even so, they are pouring all of their money into more video cards that, once installed and configured, immediately start losing money.
I don't think they're gaining any market share, especially after the Chinese produced nearly identical services.
If anything, a smaller market share is better for business. The more users they have the faster they lose money.
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