alt Hacker NewsMost unmature markets aren't subsidized to the point that LLM market is, most market have some level of baseline profitablity, this market doesn't, that's because most market subsidized the marketing or the capex but this market doesn't hold the opex, the capex not the amount of marketing let alone all of this together
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ProofHouse • today at 7:56 PM
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Most new markets are funded by initial investment capital. Early entrants operate at a loss as they grow.
This isn’t as unusual as some people are trying to make it sound. This has been happening since the dawn of finance.
I thought this would be less foreign to everyone since we just went through this whole conversation for a decade with Uber and Lyft. Their demise was predicted from the start from everyone who thought that it was going to collapse as soon as they couldn’t subsidize your rides with promos. There was much wailing and gnashing of teeth as their prices changed to feel out the market. Then they found profitability and the critics went silent.