alt Hacker News> I don’t understand how a business model that makes money pops out on the other end.
What issues do you see?
I pay for ChatGPT and for cursor and to me that's money very well spent.
I imagine tools like cursor will become common for other text intensive industries, like law, soon.
Agreed that the hype can be over the top, but these are valuable productivity tools, so I have some trouble understanding where you're coming from.
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What you're paying for ChatGPT is not likely covering their expenses, let alone making up their massive R&D investment. People paid for Sprig and Munchery too, but those companies went out of business. Obviously what they developed wasn't nearly as significant as what OpenAI has developed, but the question is: where will their pricing land once they need to turn a profit? It may well end up in a place where it's not worth paying ChatGPT to do most of the things it would be transformative for at its current price.
[1]: https://www.fooddive.com/news/sprig-is-the-latest-meal-deliv...
[2]:https://techcrunch.com/2019/01/21/munchery-shuts-down/?gucco...
Question is whether these companies are profitable off the services they're providing, or still being propped up by all the VC money pouring in.
I feel like the raw numbers kind of indicate that the amount of money spent on training, salary, and overhead doesn't add up. "We'll beat them in volume" keeps jumping out at me.