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hnarn | on: I'm not convinced the AI bubble exists
> The reality is that the adoption is incredibly fast and that revenues of the AI labs are like doubling by the quarter.

They’re still losing gigantic amounts of money. Whether that is because they’re “flooring it” as it were and growth will eventually catch up, or because the business idea is fundamentally flawed and just temporarily alive because of investor risk appetite, is the fundamental question underpinning whether it’s a bubble or not, and nobody knows the answer to that question for sure. That’s how bubbles work.

user43928 | parent
No, they are not "losing gigantic amounts of money".

They are already profitable and are investing enormous amounts into datacenter buildout to meet demand over the next years.

passwordoops | root | parent | next
The substack linked below only looks into one tiny sliver of the off-sheet circular financing that dwarfs even the most optimistic revenue growth, but it's a good place to start to understand why this is a bubble and that, yes, Anthropic is in fact "losing gigantic amounts of money":

"Boom and bust is not about revenue. To find that kind of risk, start by reading the balance sheet... [The 2008] bust came from off-balance-sheet instruments."

https://kennyfraser.substack.com/p/anthropic-ipo-part-one-wh...

Patrick Boyle goes into a deep dive that's well worth the watch:

https://youtu.be/Ic1Jf7VlXRM?si=DjiP6LVdEykBlWwU

hnarn | root | parent
What are you talking about? OpenAI is losing money, projected a $14B loss for 2026 and is themselves not expecting profit until 2029-30. xAI is losing money, about 3B.
user43928 | root | parent
Granted, maybe I extrapolated Anthropic's profitable operating result to other companies where it's not yet looking so good.

I believe your $14B OpenAI number is from 2025 though.

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