alt Hacker NewsAll subscription models are subsidized by users who don't use much. The fact that somebody on a $20 sub might get $50 in value isn't crazy if there are 3 people who only get $10 in value. This isn't some sign that the model is broken, it's the intended outcome.
Also, I didn't read this whole thing, but I have yet to see Zitron respond to the strongest AI financials claim, which is that the models themselves are profitable on a life-cycle basis, even if the companies are not profitable on an annual basis due to capital expenditure. Dario made this claim exactly, and it more or less blows all of Zitron's financials arguments up.
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Zitron has responded to that claim here: https://www.wheresyoured.at/ai-is-really-weird/#does-anthrop...
The TL;DR is that Dario likes to talk about imaginary/hypothetical companies a lot in interviews, and those companies' financials don't have a direct basis in reality.
> which is that the models themselves are profitable on a life-cycle basis, even if the companies are not profitable on an annual basis due to capital expenditure.
Until they file an S1 to go public and show the world the books, take everything they say with a grain of salt. The amount of financial engineering going on in this space is astounding, and I'll believe it when I see an objective 3rd party release an audit confirming this claim.
> but I have yet to see Zitron respond to the strongest AI financials claim
He does in this [0] article.
[0] https://www.wheresyoured.at/ai-is-really-weird/