AI companies are literally burning their money like crazy!!



Imagine you have a product that costs you $5,000.

How much could you sell it for? Definitely more than $5,000.

Now imagine I tell you I sell this product for only $200!

That means I lose $4,800 with every sale.

This is exactly what's happening right now with AI companies.

I recently read a report estimating that a Claude subscription costing $200 costs Anthropic about $5,000 in computing expenses.

A year ago, this number was around $2,000.

So not only are they losing money, but the operating costs are rising and the losses are growing.

Of course, this is happening because everyone bets that these huge losses will be worth it once they succeed in reaching AGI.
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