Now you can keep track of how many billions the AI companies are losing on AI.
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"Good Lord, where are they getting the money for this?"
And then you scroll up and that one single massive green bar…
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If the difference between red and green bar is the multiplier one can expect for any AI service subscription these companies offer, ouch.
"Venture capital looks at valuations and growth, not necessarily at profit or revenue. So you don’t actually have to invest in technology that works, or that even makes a profit, you simply have to have a narrative that is compelling enough to float those valuations. So you see this repetitive and exhausting hype cycle as a feature in this industry. A couple of years ago, you would have been asking me about the metaverse, then last year, you would have asked me about Web3 and crypto, and for each of these inflection points there’s an Andreessen Horowitz manifesto."
"It’s not simply that one piece of technology is overhyped, it’s that hype is a necessary ingredient of the current business ecosystem of the tech industry. We should examine how often the financial incentive for hype is rewarded without any real social returns, without any meaningful progress in technology, without these tools and services and worlds ever actually manifesting. That’s key to understanding the growing chasm between the narrative of techno-optimists and the reality of our tech-encumbered world."
— Meredith Whittaker, Signal CEO, to Derek Robertson. "5 Questions for Meredith Whittaker". Politico, 2023-12-01.
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan Wait, OpenAI makes money? Also is "spending" just buying cloud services from the others?
"The AI economy is circular: Google funds Anthropic, Anthropic runs on Google Cloud, Amazon funds Anthropic, Microsoft co-invests with OpenAI. This means aggregate industry figures double-count some revenue flows."
Ah, concern addressed.
Where's Palantir?
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan Particularly distressing when paired with this list of the top 10 stocks by market capitalization in the S&P 500:
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@mrgrumpymonkey @MikeElgan
Nvidia got lucky (most business succeeds by luck not judgement IMO!), as did their investor Softbank who cashed out when the price plateaued in Nov '25.This is interesting on where they invested next (TL;DR - they are attempting to own the whole supply chain, based on much cheaper silicon tech):
https://dataconomy.com/2025/11/11/the-why-behind-softbank-nvidia-stake-sale/Once the first grifters leave, the bubble's days are numbered I rekon (I hope!).
@phlash @MikeElgan Just completing the circle to inflate the numbers. We get to live in an AI marketing world, while these companies keep getting rich. The marketing side is only going to get worse it seems. I'm not fully against the products, but I am against how it's being forced onto everyday devices that don't need it. Capitalism at it's finest.
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan nvidia seems to be getting profits on it though (the only one on the list that is)
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
Addicted users will soon start paying for a subscription.
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan "since page load" is a hell of a metric
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
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I wonder could it take down one of the behemoths?
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan
What's NVidia's one weird trick? -
Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@davidgerard You've likely seen this but in any case...
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Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan the problem is they don't care how many billions they lose, in this market what matters is getting your stock price pumped as high as possible which is very stupid and hurts consumers a lot while benefiting idiot investors who would buy shares of dog turds if they had "AI" written on them -
Now you can keep track of how many billions the AI companies are losing on AI. (Red is spending, green is revenue.) https://isaiprofitable.com/
@MikeElgan another 1 billion!
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"Venture capital looks at valuations and growth, not necessarily at profit or revenue. So you don’t actually have to invest in technology that works, or that even makes a profit, you simply have to have a narrative that is compelling enough to float those valuations. So you see this repetitive and exhausting hype cycle as a feature in this industry. A couple of years ago, you would have been asking me about the metaverse, then last year, you would have asked me about Web3 and crypto, and for each of these inflection points there’s an Andreessen Horowitz manifesto."
"It’s not simply that one piece of technology is overhyped, it’s that hype is a necessary ingredient of the current business ecosystem of the tech industry. We should examine how often the financial incentive for hype is rewarded without any real social returns, without any meaningful progress in technology, without these tools and services and worlds ever actually manifesting. That’s key to understanding the growing chasm between the narrative of techno-optimists and the reality of our tech-encumbered world."
— Meredith Whittaker, Signal CEO, to Derek Robertson. "5 Questions for Meredith Whittaker". Politico, 2023-12-01.
If the C level at all those companies burning budget on AI also holds Nvidia stock…
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