Finance bros who run wall street are all idiots, so they designed a system where no matter how stupid they are, they're always right. If you get a bunch of finance bros in a room and give a really good sales pitch, your valuation can triple despite nothing real actually happening.

In the case of AI, even the foremost experts are uncertain about how useful AI is. Qualified people disagree and no AI based tool has really proved itself to be robust, but it is amazing at fooling people who are either dumb or willfully ignorant, so it's like crack cocaine to anyone who works on Wall Street.

Capitalism doesn't sell performance. It sell 'potential' and 'perceived gains'.

if you're mad at this, don't look at how much xai is worth.

ai is basically just a pump and dump for rich people before the bubble bursts

Same goes for Tesla, it's severely over bloated even if it's bubble has shrunk a bit.

These sort of bubbles should be stopped by the government but why stop that if the politicians themselves are the ones having pumped millions into these bubbles?

First you gotta make a law prohibiting politicians from having stocks, then watch how fast this problem gets resolved

That's how every single company targeting consumer market in the web started. No profit for many years. Majority because of scale of the market. Facebook started making profit after 2012 so for 8 years they were burning money figuring out where to sell their soul to. Now the scale and risk for OpenAI is way bigger, because they have not sold their users fully or we don't know if they sold it and for exchange for what. It would be funny if they at some point alter their privacy policy and turn out to sell people's chats to advertising agencies. They might also go bankrupt or turned out to be a scam that hires thousands of people to answer questions.

Totally normal. Just keep throwing stupid amounts of money at it so it can find a way to undercut some existing business structure by operating at a loss until that business is dead and then enshittify. Profit! /s

You know when you're playing a game and you think this is kinda dumb sure my gun now does 100 more damage but the baddies have 100 more health so really nothing has changed? But it still makes you feel better because well, it's 100 more.

I think that's how these valuations work.

It shouldn't be, but it is. 20 years ago, in the far-off year of 2005, a lot of tech companies more or less followed the same path, where it took decades for them to actually be profitable, if they were at all.

YouTube ran at a deficit for something close to 15 years. AI companies are likely following this trend, and running mostly on investment money, rather than being self-sufficient.

No.

I should fucking hope OpenAI isn’t profitable.

That's because it's just gambling.

Gotta keep in mind, profit can always be distorted based on how much employees are getting paid.

Someone is making money. In fact, a lot of people are.

The history of the Internet and computers in general is full of investors willing to take seemingly insane chances on overvalued speculative ventures.

absolutely should. america lives in an idiocracy. a trump meme coin could be valued at 100trillion $ and thats fine. if you want feudalism with extra steps, this is exactly that. go buy some golden sneakers and maybe they'll be worth a million some time or not.

pretty typical with tech companies, people get too optimistic sometimes

So now we are actually to the point where we can ask if a corporation or more widely anything at all has any value if it makes no profit.

There are people in the world who by luck of birth or circumstance have amassed obscene wealth and they after the fact are trying to convince everyone that profit is the only thing of value. These are the real public enemies.

Fuck no it should never be normal. Its against true business. If there wasn't so much money in the system then a business would have to actually run like a real business.

Yes and it should be worse. OpenAI should be forced to take on the cost of compensating every copyright holder it exploited. If that means OpenAI doesn’t exist I’m absolutely okay with that.