alt Hacker NewsDon't all these AI companies run at negative margins? How do they afford to buy all the books in the world?
I don't see how these companies are not already bankrupt given how much they subsidize
Replies
throw_m239339 • today at 5:38 PM
> How do they afford to buy all the books in the world?
You are on a VC website at first place, what question is this?
brookst • today at 4:31 PM
You should look at the first decade of other capital-intensive companies, like FedEx or spacex.
The whole point of investment in private companies is to subsidize u profitable operations. If companies came out the gate being profitable they wouldn’t need investors.
gambiting • today at 3:09 PM
The same way they can afford to build new data centres - they get investment money.
Regarding subsidy/profits: Anthropic at least seems to be on track to report a profitable Q2 2026
> Anthropic has projected revenue of at least $10.9 billion for the second quarter of 2026, more than double the previous quarter, on track for its first quarterly operating profit of $559 million.
https://www.reuters.com/business/anthropic-ipo-valuation-hin...