The AI boom has turned the standard profit margin model on its head, according to Apollo Chief Economist Torsten Slok—and it’s making the industry’s growth unsustainable.
“Top economist”? Sounds like that title is self given, as this is essentially how every single startup works, until long after they’re startups. Companies like Spotify and Netflix and every other big tech company worked exactly the same.
They’re all kept alive by investors until they’ve grown to a size where they can sustain themselves. Every dollar they earn from customers is re-invested back in the company until then, and they rely on investor funding.
“Top economist”? Sounds like that title is self given, as this is essentially how every single startup works, until long after they’re startups. Companies like Spotify and Netflix and every other big tech company worked exactly the same.
They’re all kept alive by investors until they’ve grown to a size where they can sustain themselves. Every dollar they earn from customers is re-invested back in the company until then, and they rely on investor funding.