alt Hacker NewsGrok is losing pretty spectacularly on the user / subscriber side of things.
They have no path to paying for their existence unless they drastically increase usage. There aren't going to be very many big winners in this segment and xAI's expenses are really really big.
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TurdF3rguson • today at 2:43 AM
Merging with SpaceX means they don't have to pay for their existence. Anyway they're probably positioned better than any other AI player except maybe Gemini.
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I really wonder what will happen when the AI companies can no longer set fire to piles of investor money, and have to transition to profitability or at least revenue neutrality - as that would entail dramatically increasing prices.
Is the plan to have everyone so hopelessly dependent on their product that they grit their teeth and keep on paying?