• Iconoclast@feddit.uk
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    9 days ago

    Just like with Uber, they intentionally lost money at first and planned to jack up rates when there was no competition to make profits.

    They’re intentionally still losing money because of the heavy investments to rush ahead in capabilities.

    • givesomefucks@lemmy.world
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      9 days ago

      They’re intentionally still losing money because

      Nvidia wouldn’t be funding them if AI wasn’t the biggest buyer of Nvidia chips…

      It’s an Ouroboros, if they charged enough to be profitable that would kill demand which would kill data center rollout, which would kill Nvidia’s business model and then they wouldn’t fund AI companies and kill the AI company stock.price causing a sell off.

      Becoming profitable would erase their business model, and all their personal wealth tied up in their own stocks.

      We’d all be better off if we just paid them to hand briefcases full of money to each other instead.