this post was submitted on 13 Oct 2026
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No one in the AI industry is making money. They are all burning through venture capital just to stay afloat. They don't have viable a economic plan, the pricing they would have to charge in order to make a profit makes the product unappealing to the vast majority of people. So either they continuously subsidize the product in which case they don't make profit, or they charge what they actually need to charge and then they don't have any customers.
It's a no win scenario created entirely by the fact that they are trying to put an in-development technology out into public before it's really ready.
They're doing a Tesla.
Ive been saying this. The only way this succeeds is to sell this to businesses, but even then I feel like companies are realizing it's way to much money to actually justify it because they want to reduce workforce and save money but this will not do that. In the end they get a great deal on the first few years before the contract is up and then have to renew at way higher pricing. Not to mention they have less control over the company and will be paying yearly maintenance fees that probably cost more than the raises they wouldnt have given their employees but now have to pay up those crazy fees every year no matter what. Yeah it's absolutely going to fail for most things for the forseeable future. Someone will find a way to make it work eventually, but its still a ways off.
And Tesla is still around, so…
And making great financial decisions.
They can barely even sell the cyber truck in North America which is a problem because that's the only place they're allowed to sell it