Did the frontier labs take out debt or did they make flimsy unenforceable agreements to neoclouds who took out debt?

Apple is worth more than all the AI companies combined. You think LLMs are less valuable in the global market than slightly updated iPhone models every year?

Their costs could drop, competition could dry up, or they may only be unprofitable in the first place because they’re choosing to invest more money in growing their business than they’re currently making, a practice which need not and will not continue indefinitely.

It’s not at all unusual for companies to run at a loss for several years before turning a profit.

The government could bail them out, that's the most likely scenario if they don't implode IMO.

They could also continue to grow at the rates they had last year. I don't know where those customers would come from, but if they did pull that off OpenAI and Anthropic could sustain propping up the circular financing going around the AI industry.

Stuff like this that defies all logic happens all the time. Amazon operated at a massive loss first it’s first decade and still IPO’d years before they posted a profit.