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Do AI companies work?

The market needs to be irrational for you to stay solvent.

This seems very risky though: The costs of building those models will likely keep going up; your smartest employees might leave; you probably don’t want to stake your business on always being the first company to find the next breakthrough. Though OpenAI’s work requires a lot of physical computing resources, they’re leased (from Microsoft, or AWS, or GCP), not built. But AI companies seem to be an extreme example of the market misclassifying software development costs as upfront investments rather than necessary ongoing expenses.

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