The AI industry spent $50 billion on chips from Nvidia to train AI in 2023 and brought in $3 billion in revenue.
@asymco @ivan3bx that’s how the tech industry operates. when the market is early, the belief is that you can’t ever have bottom line growth without first seeing top line growth. profit is distraction in the early days
the idea is illustrated clearly in The Innovators Dilemma — the first to disrupt is almost always the long term leader, so it’s absolutely worth operating at a loss while capturing the market
@kellogh @asymco @ivan3bx I don’t remember the book making that claim - what I remember is that incumbent firms (rationally) cater to their existing customer base and that leaves them open to disruption from below where competitors build inferior, cheaper products catering to the less profitable consumers ignored by existing players.
@karlstanley @kellogh @ivan3bx Indeed it makes no such claim. The pursuit of the more than good enough is the dilemma.
@asymco @karlstanley @ivan3bx chapter 6, under the heading “Leadership in Disruptive Technologies Creates Enormous Value”. in my version its pages 124-128