this post was submitted on 01 Sep 2026
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[โ€“] khanh@lemmy.zip 1 points 2 days ago (1 children)

i dont get it; not paying for a subscription should actually discourage them from building new data centres because they're turning a net loss by you doing that. it's also, very freakin clear, that AI in its current state is not profitable.

[โ€“] ProdigalFrog@slrpnk.net 2 points 2 days ago* (last edited 2 days ago)

Virtually the entire industry is not profitable, but that current reality does not affect the massive investment money they continue to receive, as they are pitching the concept to investors that many of the free users will eventually become paying users, and that their overall userbase will continue to expand, with projections of huge profits a decade from now.

For investors, the lack of profits now is not a blaring alarm bell, because Amazon also operated without a profit for many years by undercutting their competition until the competition failed, then Amazon was able to be a monopoly and jack up their prices.

A similar thing is happening with AI companies, where the prices they are currently charging is putting them at a net loss, but each one is hoping to out survive the other so that some day they can be a semi or total monopoly, and jack the prices up on a userbase that has become totally dependent on them to do their jobs.