Why Everybody Is Losing Money On AI

TLDR

Despite high costs, companies offering generative AI services are losing money, with no clear path to profitability. An example is Anysphere's Cursor app, which sends all revenue to Anthropic, funding its competitor. Perplexity and OpenAI also face significant financial losses due to high compute costs.

Seems like there are a lot of things to be worked out by the market.