alt Hacker NewsIt's a loss leader but this is normal. Same has happened with Uber, Airbnb, Amazon, etc. Using VC money to buy marketshare and once you have it, you can milk it.
The question is more around the moats that these companies have and it seems to me while their models are amazing technology, they don't really have a moat. The open/chinese models still continuously catch up to the american ones.
And what possible moat. It isn't hard to foresee that in just a couple of years, models outpacing the latest frontier tech we have today will run on consumer hardware. With open source workflows anyone can pull in to run, providers won't see a penny.
Another scenario is that dense models get replaced entirely, in which case the likelyhood of OpenAI and co pioneering the concept is pretty slim. They will be left with billions worth of infrastructure which cost them 10 times that 2 years earlier, faced with the reality touched by the article: liquidate.