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Strategies & Market Trends : The Art of Investing

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Nov 4 4:00 PM EST

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To: Sun Tzu who wrote (10276)	10/8/2025 4:10:36 PM
From: Johnny Canuck	Read Replies (1) of 10513

My take away is slightly different than yours. I think she was making the point that there is a place for startups like Open AI and Anthropic as they are pushing the envelope and don't necessarily and may never have to make money. GOOGL and META in the early days did that exactly that. Even the early day of the browser wars with Netscape and Mozilla fall into that category. They never really made money. Her point was that to eventually survive and be companies that grow they need to figure a more boring business model. For GOOGL it was ads that accompanied the searches. The searches by themselves did not and still do not make them any money. Same thing for META, their social media activities don't make any money and still don't make any money. It is only when someone figured out they could use all the info on users to sell to advertisers or target ad to their users that they had a sustainable business model. All are boring businesses that they needed become sustainable. Her point was real money comes from solving someone's pain point and that is often B2B, which are GOOGL and META's business models. It costs META $150 to acquire every new user. GOOGL spends money on a browser to acquire data to better target ads and gives it away for free. GOOGL also spends billions on having APPL using Google search as the preferred search engine so their users will see targeted ads. The core technologies are all money losing initiatives build around cool tech, but the real money is the boring business side. No one has figured out what the business model for Open AI and Anthropic is yet was her point. For everyone else that does not have the luxury of the halo of being an AI leader, they need a good business model to start out as their runway is shorter. We saw that most recently in the METAverse which was a runway to nowhere so far.

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