THE PROBLEM WITH HYPERGROWTH AI STARTUPS

Summary from the TLDR newsletter

Startups that have had explosive AI-driven revenue growth may be in trouble. Most of these companies are scaling revenue by reselling inference at very low (and sometimes negative) margins. The value of the products or services they're providing isn't adding anything on top of the intelligence they are reselling. While VCs seem excited about this growth, the business model is unsustainable.