How the AI Labs Make Profit (Maybe, Eventually)

I wrote this essay as a submission to Dwarkesh Patel’s blog prize, though I have been meaning to write this up for a while.Usually, for a company to become profitable, they need to increase revenue, decrease costs, or some mixture of the two. For AI companies in their current form, I think there is a third way they can become profitable that looks like increasing revenue but is distinct from what they are currently doing. Namely, internal deployment where they spin up internal companies.First, t...