alt Hacker NewsBut there’s a difference between fearing mongering with a crash and a long term correction. The correction would make all the startups/companies that created a wrapper around frontier models go away, but the ones that truly solved a problem would remain.
Also I remember reading that Anthropic is on its way to be profitable in 2028
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satvikpendem • today at 4:31 PM
That's exactly what a crash is, there's not much difference. For example that's exactly what happened in the dot com era.
With respect, the way you talk about corrections makes me suspect you weren't working in tech in the US at the turn of the century.
A "correction" in this model isn't a reasoned and gradual re-evaluation of the market cap of every company. It's a broad pullback where people panic and no one wants to be left holding the bag. Money shifts into other assets for years and tech employment, incomes, and the availability of funding takes a big hit.
As to your comment about profitability... every unprofitable company is on a path to be profitable. Some even get there.
Plus, look at it this way: Kellogg's is a profitable company and a part of almost every person's life. Does this make them worth trillions of dollars? No, they just provide boring, commodity products, their valuation is basically a low multiple of the assets they hold and the revenues they bring. There's a future where OpenAI or Anthropic are more powerful than all the world's governments combined, but also a future where they're Kellog's.