Most of the expense can probably be attributed to training and operating their free-tier. They can shut off both of them any day and become insanely profitable. I don't think people realize the sheer magnitude of reaching $3B ARR in under two years. Is there an AI hype? Sure. Is it a crypto-like bubble just where everyone is just peddling BS? No, not even close.
> I don't think people realize the sheer magnitude of reaching $3B ARR in under two years.
These things impress people who fail to digest business fundamentals. Anyone with a suit and a slick powerpoint preso can in theory start a money-incinerating machine. The real measurement is the profit. And before someone makes the "capture the market" comment - this isn't ZIRP anymore. Money costs fuckin money now.
