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  • Profit Models of AI Companies: Why High Valuations, Low Profits?

    Jessica Liu
    1 reply
    In recent years, the number of AI companies has rapidly increased, and their valuations are remarkable. However, many companies are facing profitability challenges, with their revenues appearing modest in comparison to their costs. What are your thoughts on this phenomenon?

    Replies

    I think most people predict that the costs of using LLMs will go down over time, increasing the profit margins for most new AI companies built off openAI and similar