Somebody mentioned today that reddit has been losing money for 17 years.
edit: my bad, apparently they lost money for 17 years before finally turning a profit about a year and a half ago. Anyway the point is that it can take a long time.
Plenty of examples of companies spending more than they earn for decades. Before OpenAI and Anthropic, though, nobody has ever needed to raise more than $100 billion from investors before turning a profit, though. The scale is immense, enough to where it affects the liquidity of the investors that have funded their rise.
Yeah, it looks like they first turned a profit in 2024, like $25 million and last year it was half a bil. Maybe what I saw was that they lost money for 17 years before that, I dunno.
Somebody mentioned today that reddit has been losing money for 17 years.
edit: my bad, apparently they lost money for 17 years before finally turning a profit about a year and a half ago. Anyway the point is that it can take a long time.
Plenty of examples of companies spending more than they earn for decades. Before OpenAI and Anthropic, though, nobody has ever needed to raise more than $100 billion from investors before turning a profit, though. The scale is immense, enough to where it affects the liquidity of the investors that have funded their rise.
The norm for tech companies was to continue to burn cash after IPO for years and years to capture market share and worry about monetization later.
I’m no financial wiz but the Wikipedia says they had half a billion in income on 2.2 billion revenue.
Yeah, it looks like they first turned a profit in 2024, like $25 million and last year it was half a bil. Maybe what I saw was that they lost money for 17 years before that, I dunno.