alt Hacker News> Amazon was unprofitable for over a decade, and they were public.
Amazon was unprofitable because they poured their revenue into growth. On paper, they were in the red, but everyone - especially investors - saw what was going to happen, given their trajectory.
Is it the case that any of these AI companies are actually making a ton of money and growing accordingly? AFAICT, we've just got [a] big players like Google that can subsidize AI in the hopes of waiting everyone else out and [b] private companies raising capital in the hopes that when the market returns to rationality, they may be solvent.
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Yes that is exactly what is happening. OpenAI and Anthropic are the fastest growing companies by revenue ever and their gross profit margins are healthy.
> On paper, they were in the red, but everyone - especially investors - saw what was going to happen, given their trajectory.
As I recall, no, Wall Street and public shareholders were getting pretty antsy over AMZN earnings, which is why Bezos famously said "We are willing to be misunderstood for long periods of time."
The same thing is playing out today: insiders and early investors (presumably privy to information we don't have) see the trajectory of the frontier AI labs, but Wall Street and public shareholders see only the losses. This is why at every earnings report the hyperscalers simultaneously 1) post record revenues and earnings, 2) announce even greater CapEx spending and AI investments, and hence 3) get punished by the stock market.
Clearly all the AI players are willing to be misunderstood for long periods of time.