▲ 793 ▼ Techcrunch reports that AI coding tools have "very negative" gross margins. In other words, they are losing money on every user. (techcrunch.com) submitted 1 year ago* by Davriellelouna@lemmy.world to c/technology@lemmy.world 175 comments fedilink hide all child comments
[–] toothpaste_ostrich@feddit.nl 4 points 1 year ago (2 children) Venture capitalism is what it's called, I think permalink fedilink source parent hideshow 4 child comments replies: [–] Saledovil@sh.itjust.works 8 points 1 year ago (1 child) Venture capitalism is when you give somebody money to start a business in hopes that they make it big, giving you really valuable equity for relatively little money. What you're thinking of is blitzscaling. Scale up in an unsustainable way in order to gain market dominance, so that you can use that to become profitable. permalink fedilink source parent hideshow 2 child comments replies: [–] Knock_Knock_Lemmy_In@lemmy.world 1 point 1 year ago You are correct. However, you can only really blitzscale with VC backing. permalink fedilink source parent [–] buddascrayon@lemmy.world 7 points 1 year ago It is not venture capitalism. Though it is fueled by venture capitalism. I am describing the type of car and you are calling it gasoline. They're most distinctly not the same thing. However it should be noted there both a part of the same corrosion of our society. Just how automobiles that run on gasoline are a corrosion on our atmosphere. permalink fedilink source parent
[–] Saledovil@sh.itjust.works 8 points 1 year ago (1 child) Venture capitalism is when you give somebody money to start a business in hopes that they make it big, giving you really valuable equity for relatively little money. What you're thinking of is blitzscaling. Scale up in an unsustainable way in order to gain market dominance, so that you can use that to become profitable. permalink fedilink source parent hideshow 2 child comments replies: [–] Knock_Knock_Lemmy_In@lemmy.world 1 point 1 year ago You are correct. However, you can only really blitzscale with VC backing. permalink fedilink source parent
[–] Knock_Knock_Lemmy_In@lemmy.world 1 point 1 year ago You are correct. However, you can only really blitzscale with VC backing. permalink fedilink source parent
[–] buddascrayon@lemmy.world 7 points 1 year ago It is not venture capitalism. Though it is fueled by venture capitalism. I am describing the type of car and you are calling it gasoline. They're most distinctly not the same thing. However it should be noted there both a part of the same corrosion of our society. Just how automobiles that run on gasoline are a corrosion on our atmosphere. permalink fedilink source parent