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EdmondDantes_

(1,881 posts)

5. That's kind of the standard business practice now

Reply to highplainsdem (Original post)

Thu Apr 2, 2026, 09:58 PM

Apr 2

Run at a loss on venture capital, corner the market, raise prices or get bought. Uber/Lyft, Netflix, LinkedIn etc.

Blitzscaling. Not only is it a poor form to name things after nazis, the tactic didn't win the war.

The allure of billions for founders at start ups is strong and with enough equity, even if the business fails, you can hit it big. See Adam Neumann.

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2 members have recommended this reply (displayed in chronological order):

newdeal2 highplainsdem

19 replies

= new reply since forum marked as read

Highlight:

Ed Zitron on AI companies having deceived users w/subsidized rates they can't afford: There's no way to right this ship [View all] highplainsdem Apr 2 OP

If you like your news/commentary in audio, Ed Zitron also has a podcast, "Better Offline" RockRaven Apr 2 #1

Thanks! There's also an r/BetterOffline subreddit where Ed posts as ezitron. highplainsdem Apr 2 #3

Much love to Ed! BlueNProud Apr 2 #2

He's been doing brilliant analysis of the AI industry. highplainsdem Apr 2 #4

Yes indeed BlueNProud Apr 2 #6

That's kind of the standard business practice now EdmondDantes_ Apr 2 #5

It's the extent to which they're running at a loss that's anything but standard. Most users now pay $20 or highplainsdem Apr 3 #11

Yup get them hooked at a cheap price newdeal2 Apr 3 #12

True. But as I said above, we've probably never seen this great a disparity between what customers highplainsdem Apr 3 #17

Hard for me to say because I wonder about enterprise customers newdeal2 Apr 3 #19

They'll make a quick pivot to mass government surveillance... hunter Apr 3 #7

I hope they won't get enough from the government to make up for their losses with all other highplainsdem Apr 3 #13

Really interesting WSHazel Apr 3 #8

I'm sure there are, but I can't make any recommendations offhand. Ed does link to lots of sources, highplainsdem Apr 3 #14

I'm pretty sure Chinese AI will be better and more affordable. David__77 Apr 3 #9

Still with the same illegal-training problem, though, and another surveillance worry. highplainsdem Apr 3 #15

Makes perfect sense to me. MineralMan Apr 3 #10

Thanks! I hope the correction happens soon, so investment money and valuable expertise will go to highplainsdem Apr 3 #16

Agreed! MineralMan Apr 3 #18