sc94597 on 25 May 2026
I remember 5 years ago, during the pandemic, there were many predictions that there would be a collapse in delivery apps, because all of the delivery apps weren't making profits. Many industry analysts suggested that these companies would never become profitable and that it was impossible given the high operational costs.
Roughly around 2023-2024 they became profitable.
This is a common trend in the tech industry. Companies make large losses over time, and then a decade or two out they start making large profits.
Compute costs are going to decrease over time as infrastructure is built out and currently nascent technologies (high bandwidth memory and networking, photonics, etc) mature.
